The local share market has closed in the red today, with the major banks leading the declines after Westpac announced an increase in bad debts and gave a cautious outlook. And Telstra dropped after the Future Fund sold a big chunk of its stake in the telco.
The S&P/ASX 200 Index closed 87 points lower at 4,291 and is down 170 points on week. On the futures, the SPI200’s down 71.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index up 29 points on the four trading days this week. The S&P500 Index gained 3, the NASDAQ added 4 points and the 100 index also rose 3 points.
To company news around this afternoon: Insurance Australia Group Ltd (ASX:IAG) has reported a net profit after tax of $181 million for the 12 months to June 30 compared to a loss of $261 million the year before. CEO Mike Wilkins says while the company’s performance has improved, it’s below the company’s expectations held at the outset of the year. The company says it expects growth of 3 - 5 per cent in gross premiums and an insurance margin in the range of 9 - 11 per cent in fiscal 2010. IAG declared a final dividend of 6 cents a share down from 13.5 cents a share last year. IAG shares closed 6.58 per cent lower at $3.55.
Media company APN News & Media Ltd (ASX:APN) has reported a 53 per cent drop in half year net profit saying the company experienced difficult trading conditions towards the end of the first half. Net profit after tax for the six months to June 30 came to $33.6 million, down from $71.9 million in the first half of 2008. CEO Brendan Hopkins says September onwards looks a little better, particularly in New Zealand Publishing and Australian Outdoor, which has experienced a difficult period but where forward orders into quarter four are encouraging. APN News & Media will not pay an interim dividend this year. APN News & Media shares closed 5.37 per cent weaker at $1.675.
Also making news today: Property trust Macquarie DDR Trust (ASX:MDT) has posted a statutory net loss of $616.4 million for the year to June 30 following an $8.2 million loss in fiscal 2008.
And Mortgage Choice Ltd (ASX:MOC) has reported a 38.8 per cent jump in full year net profit to $26.8 million, the result boosted by a one-off non-cash balance sheet adjustment of $15.6 million. On a cash basis net profit declined 23.9 per cent to $13 million for the year.
Now to the best and worst performers: All sectors closed in the red today, however the sector with the smallest loss at close was the Health Care index, down 8 points to 8,275; while the worst performing sector at close was the Telco Services index; down 57 points to 1,193.
The best performing stock in the S&P/ASX200 was Lynas Corp up 9.35 per cent to $0.585 cents. Shares in AWB and Sims Metal Management also closed higher.
The worst performing stock was Macquarie Office Trust with shares falling 8.16 per cent to $0.225. Shares in Emeco Holdings and IAG also closed lower today.
The Aussie dollar is currently buying 82.46 U.S cents and is down almost a cent on the week. Gold is trading at $939.90 U.S an ounce and is down $5.95 on the week.
Finally, oil is down 44 cents at $72.47 U.S a barrel.
