It was another day in the red on this Tuesday. The Australian share market closed 1.5 per cent lower as investors shrugged off news of a new PM. Instead following a poor lead from Chinese equities.
The S&P/ASX 200 index closed 78 points down to finish at 5,018.
The value of trades was $5 billion on volume of 835 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC)
On the futures market the SPI is 79 points down.
Economic news
The Reserve Bank’s meeting minutes warned that both China’s slowdown and the expected US tightening of monetary policy have the propensity for fresh market upheavals. Meanwhile the Bank of Japan kept monetary policy steady at its September policy meeting. The bank cut its assessment of exports and factory output.
Company news
IRESS Limited
(ASX:IRE) has announced the acquisition of two UK businesses as part of its strategy to further develop its UK operations. The separate purchase of leading fintech businesses Proquote Limited and Pulse Software Systems Limited were bought for a total purchase price of £37.6 million. IRESS Limited closed 1.88 per cent down at $8.87.
Oil Search Limited
(ASX:OSH) has sent a letter to shareholders reiterating the Board’s decision to reject Woodside’s proposal. Oil Search argues that the proposal is highly opportunistic and grossly undervalues the company. The board notes it is open to proposals in the future that reflect compelling value for Oil Search shareholders and remains fully committed to PNG and its existing strategy. Shares in Oil Search Limited closed 2.94 per cent down at $7.27.
Kathmandu Holdings Limited
(ASX:KMD) reiterated to its shareholders not to accept a takeover bid from Briscoe Group, saying it grossly undervalues the company.
G8 Education Limited
(ASX:GEM) said it will allow takeover offers to close and will vote all of its Affinity Education shares in favour of an Affinity Scheme of Arrangement involving Anchorage Childcare.
Village Roadshow Entertainment Group
(ASX:VRL) completed new corporate debt facilities totalling US$325 million.
Lucapa Diamond Company Limited
(ASX:LOM) announced it had unearthed three large valuable diamonds at its Lulo Diamond Project in Angola.
Best and worse performers
All sectors were lower. The sector with the least losses was Staples adding 0.7 per cent to close at 8,164. The worst performing sector was Financials Excluding REITS, losing 1.9 per cent to close at 6,633 points.
The best performing stock in the S&P/ASX 200 was Seven West Media, rising 6.47 per cent to close at $00.74. Shares in Evolution Mining and Graincorp also closed higher.
The worst performing stock was South 32, dropping 7.49 per cent to close at $1.54. Shares in Whitehaven Coal and Slater & Gordon also closed lower.
IPOs
Ellerston Asian Investment Limited started trading today. The investment manager floated with an issue price of $1.00, opened at $1.00 and closed as $0.99
Commodities and the dollar
Gold is trading at $US1,109 an ounce. Light crude is $0.59 down at $US44.57 a barrel. The Australian dollar is buying $US0.7111
