Market Wrap: Aus shares sink as rally ends

Market Reports

The Australian share market closed 1.61 per cent lower snapping its six day winning streak and following overseas markets lower. 
 
The S&P/ASX 200 index closed 92 points down to finish at 5,615. 
 
The value of trades was $4.5 billion on volume of 733 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA) Westpac Banking Corporation (ASX:WBC) and BHP Billiton Limited (ASX:BHP)
 
On the futures market the SPI is 90 points down.
 
Economic news

CPI came in as expected with a 0.7% jump in second quarter consumer prices thanks mainly to a 12 per cent rise in petrol prices. Inflation was up 1.5 per cent for the year, above the first quarter read of 1.3 per cent. Core inflation of 2.2 per cent annually is still within the RBA target of 2-3 per cent. 
 
Company news
 
South 32 Limited (ASX:S32) says challenging market conditions have forced a suspension of capacity at its South African smelter. The BHP Billiton spin-off will write down over $2.5 billion of is manganese and coal business. Metals production is down while coal production is up. Shares in South 32 closed 2.19 per cent down at $1.79, well below its listing price of $2.05. 
 
Tabcorp Holdings (ASX:TAH) says it could face a civil trial instigated by government body Austrac which is accusing the gambling operator of failing to comply with anti-money laundering and counter terrorism laws. Shares in Tabcorp ended 4.22 per cent lower at $4.77
 
Oil Search Limited (ASX:OSH) has achieved record production in the June quarter and lifted its output guidance for the full calendar year. 
 
National Australia Bank Limited (ASX:NAB) has revised its Australian dollar forecast downwards to 72 US cents by the end of the year due to recent global events. 
 
Boral Limited (ASX:BLD) says that strong earning in June and higher than expected property sales will propel full year net profit to between $240 to $250 million.
 
And Novogen Limited (ASX:NRT) CEO Dr Graham Kelly is resigning immediately and returning to non-oncology based research. Former director Ian Ross has returned as acting CEO.
 
Best and worst performers

All sectors were down today. The sector with the least losses was industrials shedding 1.1 per cent to close at 4,798. The worst performing sector was utilities, losing 3 per cent to close at 6,463 points.
 
The best performing stock in the S&P/ASX 200 was Evolution Mining, rising 5.82 per cent to close at $1.00. Shares in Oz Minerals and Automotive Holdings also closed higher.
 
The worst performing stock was Ansell, dropping 6.08 per cent to close at $24.54. Shares in Duet Group and Paladin also closed lower. 

Commodities

Gold is trading at $US1,096 an ounce. Light crude is $0.42 up at $US50.86 a barrel. The Australian dollar is buying 74.16US cents.

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