The selling continued this afternoon and by the close the local market had shed 1.4 per cent.
The banks gave up their slim losses from yesterday and Myer weighed on the market as investors dumped the stock, unconvinced that its turnaround strategy will be enough to get earnings moving again.
Today’s losses came despite some solid gains from the US overnight with blame focussed closer to home on a poor retail trade read, Tuesday’s weak GDP numbers and continuing unease over growth in China.
The S&P/ASX 200 index closed 74 points down to finish at 5,028.
The value of trades was $6.2 billion on volume of 973 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 48 points down.
Company news
Shares in Myer Holdings Limited
(ASX:MYR) sunk more than 20 per cent today as it completes the institutional component of its entitlements issue announced on Tuesday. CEO and Managing Director Richard Umbers says the $221 million raising will ensure Myer has the balance sheet flexibility to implement its “New Myer” strategy. Myer closed 20.55 per cent down at $0.90.
Evolution Mining
(ASX:EVN) has received approval from the Foreign Investment Review Board for its takeover of Phoenix Gold Limited
(ASX:PXG). The deal has a few minor conditions remaining with Evolution planning to send a bidder’s statement to Phoenix shareholders in late September. Shares in Evolution closed 3.57 per cent up at $1.16
Energy Developments Limited
(ASX:ENE) has seen its landfill gas power project extended for a further 15 years with the owner of Zion landfill in the US.
Health care developer Admedus Limited
(ASX:AHZ) has expanded its CardioCel portfolio with a new bio-scaffold option in its product line.
Newzulu Limited
(ASX:NWZ) has appointed KPMG Corporate Finance as financial adviser as it assesses interests from outside investors.
Atrum Coal Limited
(ASX:ATU) has announced the closure of a $3 million institutional placement.
Best and worst performers
All major sectors were lower today, the sector with the least losses was consumer staples losing 0.4 per cent to close at 8,256. The worst performing sector was consumer discretionary, losing 3.2 per cent to close at 1,712 points.
The best performing stock in the S&P/ASX 200 was Mineral Resources Limited
(ASX:MIN), rising 4.37 per cent to close at $4.30. Shares in Cimic Group Limited
(ASX:CIM) and Monadelphous Group Limited
(ASX:MND) also closed higher.
The worst performing stock was Myer Holdings Limited
(ASX:MYR), as mentioned previously. Shares in Slater & Gordon Limited
(ASX:SGH) and Drillsearch Energy Limited
(ASX:DLS) also closed lower.
Commodities
Gold is trading at $US1,133 an ounce.
Light crude is $0.84 up at $US46.25 a barrel.
The Australian dollar is buying $US0.7009
