Despite a strong start to the month of February yesterday, the local share market has had a dismal session once again plunging below the 5000 point mark. The market opened in negative territory and fell deeper into the red in afternoon trade, closing 1 per cent lower. All major sectors lost ground, with energy and materials weighing heavily.
The ASX 200 lost 50 points to 4,993.
The value of trades was $4.6 billion on volume of 728 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 ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 60 points lower.
Economic news
The Reserve Bank of Australia has once again kept interest rates on hold at a record low of 2 per cent at its first board meeting of 2016. The central bank cited global economic uncertainty, volatility in financial markets and a slide in commodity prices as a reason to maintain the status quo for the near term. However it hasn’t ruled out a further easing of monetary policy should any of these circumstances start to change.
Company news Alexium International Limited
(ASX:AJX) has signed a partnership agreement with Belgium based VLS-Group. The company is a market leading, vertically integrated supply chain and distributor for the chemical industry and related sectors. Alexium says the partnership is an excellent opportunity to secure a global presence, while focusing on its long term growth strategy. Shares in Alexium closed 2.65 per cent up at $0.78.
BHP Billiton Limited’s
(ASX:BHP) credit ratings have been lowered from A+ to A by ratings agency Standard and Poor’s.
Blackmores Limited
(ASX:BKL) has confirmed it is not considering the acquisition of Nature’s Care, contrary to apparent speculation in the market.
Navitas Limited (ASX: NVT) has announced an 8 per cent increase in revenue for the first half of FY2016 to $517.5 million.
Domino’s Pizza Enterprises Limited
(ASX:DMP) says it has now completed the acquisition of Joey’s Pizza.
Best and worst performers
The sector with the least losses was Staples slipping 0.1 per cent to close at 8,806. The worst performing sector was Energy, losing 3.24 per cent to close at 7,304 points.
The best performing stock in the S&P/ASX 200 was Altium, rising 12.17 per cent to close at $5.53. Shares in Beach Energy and LNG also closed higher.
The worst performing stock was AWE, dropping 9.28 per cent to close at $0.44. Shares in Ten Network and Challenger Financial also closed lower.
Commodities and the dollar
Gold is trading at $US1,126 an ounce.
Light crude is $2.00 lower at $US31.62 a barrel.
The Australian dollar is buying $US0.7073.
