The Australian share market closed 1.2 per cent lower dragged down by the banking sector following a capital raising from ANZ.
The S&P/ASX 200 index closed 64 points lower to finish at 5,610.
The value of trades was $4.4 billion on volume of 639 million shares at the close of trade. The top three stocks by value were Commonwealth Bank, Westpac and BHP.
On the futures market the SPI is 90 points lower.
Economic News
ABS employment figures show unemployment has risen to 6.3 per cent in July, up from 6.1 per cent in June. The long term unemployment rate remains at 6.1 per cent.
Company News
ANZ Banking Group
(ASX:ANZ) said it would raise $3 billion from shareholders to cover itself in response to tighter rules on capital levels. ANZ has the lowest capital level amongst the big four banks and it is seeking $2.5 billion in an institutional share placement with the remaining $500 million to come from retail investors. Shares in ANZ last traded at $32.58.
Slater & Gordon Limited
(ASX:SGH) dismissed the current woes of UK firm Quindell which was forced to restate its accounts by British corporate watch dogs. Slater & Gordon says they did their due diligence on the business assets it acquired from Quindell and believes it has no liability in relation to the ongoing investigations. Shares in Slater & Gordon fell 3.06 per cent to $3.17
Genesis Energy Limited
(ASX:GNE) will retire its last two coal-burning electricity generators at New Zealand’s Huntly Power Station by the end of 2018.
The directors of Kathmandu Holdings Limited
(ASX:KMD) have voted unanimously to reject the takeover offer from Briscoe Group.
Finbar Group Limited
(ASX:FRI) has received development approval to turn the former Port Hedland Hospital site into a $390 million apartment project.
And Austbrokers Holdings Limited
(ASX:AUB) has paid $8.6 million upfront for a 60 per cent interest in Allied Health Australia.
Best and worst performers
The best performing sector was materials adding 0.4 per cent to close at 8,619. The worst performing sector was financials excluding REITS, losing 1.9 per cent to close at 7,541 points.
The best performing stock in the S&P/ASX 200 was Ozforex Group Ltd
(ASX:OFX), rising 12.39 per cent to close at $2.54. Shares in Kathmandu Holdings Ltd
(ASX:kmd) and Paladin Energy Ltd
(ASX:PDN) also closed higher.
The worst performing stock was Downer EDI Limited
(ASX:DOW), dropping 11.35 per cent to close at $4.06. Shares in Genworth Mortgage Insurance Australia
(ASX:GMA) and Syrah Resources Ltd
(ASX:SYR) also closed lower.
Commodities
Gold is trading at $US1,187 an ounce. Light crude is $0.59 lower at $US45.15 a barrel. The Australian dollar is buying $US 0.7334
