Local investors have abandoned ship on this Thursday as the Australian sharemarket closed down 2.42% in a sea of red. Despite optimistic jobs data, aggressive bearishness has wiped out all of yesterday’s gains.
The S&P/ASX 200 index closed 126 points down to finish at 5,095.
The value of trades was $6.6 billion on volume of 1.2 billion shares at the close of trade. The top three stocks by value were Healthscope, Commonwealth Bank of Australia and ANZ
On the futures market the SPI is 139 points down.
Economic news
The ABS reported the Australian economy added 17,400 in August, beating estimates as the jobless rate also improved to 6.2 percent.
The RBNZ cut its official cash rate for a third time to 2.75 percent. Warnings of further easing sent the Kiwi Dollar down more than 1.5 percent against the Greenback.
Official data in China showed a pick-up in China’s CPI, rising 2 percent from a year earlier.
Company news
Specialty Fashion Group Limited
(ASX:SFH) brand Rivers have cut 130 staff at its warehouses in Ballarat. Production at the three Ballarat sites will be shut down. Specialty Fashion reported a net loss if $4.5 million in FY15. Specialty Fashion Group Limited closed 1.79 per cent up at $0.57.
AMP Limited
(ASX:AMP) has become a major shareholder in accommodation owner and operator Mantra Group Limited. The total number of securities purchased provides AMP with a voting power of 7.36 percent. The move comes as UBS and EV Hospitality, controlled by private equity firm CVC Capital sold their collective 30.4 percent stake in Mantra. Shares in AMP Limited closed 2.71 per cent down at $5.74.
QBE Insurance Group Limited
(ASX:QBE) announced that a class action has been commenced against it in the Federal Court in Melbourne.
Sigma Pharmaceuticals
(ASX:SIP) reported a decrease in net profit for the half year ended 31 July 2015.
National Australia Bank
(ASX:NAB) introduced an online platform which will give computerised financial advice to customers, that’s according to Fairfax.
Villa World Limited
(ASX:VLW) purchased a site at Arundel on the Gold Coast for a purchase price of $30,660,000
Best and worse performers
All sectors were lower. The sector with the least losses was Industrials losing 1.5 per cent to close at 4,527. The worst performing sector was Energy, losing 3.8 per cent to close at 8,605 points.
The best performing stock in the S&P/ASX 200 was Greencross, rising 2.56 per cent to close at $6.02. Shares in Japara Healthcare and Metcash also closed higher.
The worst performing stock was LNG, dropping 13.03 per cent to close at $2.07. Shares in Karoon Gas and Senex Energy also closed lower.
IPOs Future Generation Global Investment Company
(ASX:FGG) started trading today. The philanthropic investor floated with an issue price of $1.10, opened at $1.07 and closed at $1.055.
Commodities and the dollar
Gold is trading at $US1,107 an ounce.
Light crude is $1.79 down at $US44.15 a barrel.
The Australian dollar is buying $US0.7001
