The Australian share market has finished our first trading day of the week in negative territory, closing 1.07 per cent lower. Renewed talk of a September rate hike by the Fed has led to a sell-off in the big four banks and a credit downgrade for supermarket giant Woolworths has also weighed heavily on the index.
The S&P/ASX 200 index closed 57 points lower to finish at 5,207.
The value of trades was $5.8 billion on volume of 1.05 billion shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), ANZ Banking Group
(ASX:ANZ) and BHP Billiton Limited
(ASX:BHP)
On the futures market the SPI is down 52 points.
Economic news
The Reserve Bank of Australia has released figures on private sector credit for July, which has beaten expectations. Total credit increased 0.6 per cent, after rising 0.4 per cent in June. Most analysts had forecasted a 0.5 per cent gain.
The Australian Bureau of Statistics has reported a 0.5 per cent fall in manufacturing sales of goods and services seasonally adjusted. Company gross operating profits fell 1.9 per cent seasonally adjusted and wages and salaries rose 1.1 per cent for the June quarter.
According to the latest TD Securities and Melbourne Institute monthly inflation gauge, consumer prices have risen 0.1 per cent in August. The annual pace of inflation increased to 1.7 per cent, but is still below the RBA's target band of 2 to 3 per cent.
Company news Infigen Energy
(ASX:IFN) has reported a group statutory net loss of $303.6 million primarily due to a write-down of its US wind business. The wind power producer says poor wind conditions in Australia also adversely impacted the continuing operations of the company. Shares in closed Infigen Energy closed down 8.16 per cent at 23 cents.
Yellow Brick Road Holdings
(ASX:YBR) has strengthened its balance sheet posting a net loss of $2.55 million for the year to June 30. The figure was a 71 per cent improvement on last year’s $9 million loss. The wealth management business owned by Mark Bouris also posted a 400 per cent increase in revenue to $165.9 million. Shares in Yellow Brick Road closed up 4.44 per cent at 47 cents.
Flight Centre Travel Group Limited
(ASX:FLT) says it is surprised and disappointed the ACCC will go ahead with a further appeal in relation to alleged breaches of the Trade Practices Act.
Ansell Limited
(ASX:ANN) has announced an on-market buyback of up to US$100 million over the next year.
Perseus Mining Limited
(ASX:PRU) has announced a record profit of $92.2 million for the 2015 financial year.
Sino Gas & Energy Holdings Limited
(ASX:SEH) says there will be delays on first gas sales from the Linxing Central Gathering Station.
Best and worst performers
The best performing sector was Industrials losing 0.1 per cent to close at 4,571. The worst performing sector was Staples, losing 2.5 per cent to close at 8,531 points.
The best performing stock in the S&P/ASX 200 was Arrium
(ASX:ARI), rising 10 per cent to close at 11 cents. Shares in Transfield Services and UGL also closed higher.
The worst performing stock was Drillsearch
(ASX:DLS), dropping 10.07 per cent to close at 63 cents. Shares in Worley Parsons and Ten Network also closed lower.
Commodities and the dollar
Gold is trading at $US1,134 an ounce.
Light crude is up $2.77 at $US45.33 a barrel.
The Australian dollar is buying 71.54 US cents.
