The Australian share market closed 0.68 per cent lower. The S&P/ASX 200 index closed 35 points down to finish at 5,108 snapping a 4 day winning streak for the market.
The value of trades was $6.5 billion on volume of 1.12 billion shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Westpac Banking Corporation
(ASX:WBC) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 28 points down.
Company News
Leading global education provider Navitas
(ASX:NVT) today announced a 12 % increase in student enrolments for the 1st semester 2016 for its Northern Hemipshere University Program colleges. Navitas closed 2.07 per cent down at $4.72.
BHP Billiton
(ASX:BHP) has forecast that the short term outlook for steel demand in China is expected to slow as the country transitions to the next phase of development and deals with an oversupplied property market. Both factors are expected to keep a lid on iron ore prices and result in a period of prolonged rebalancing for steel demand in China. Shares in BHP closed 1.83 per cent down at $18.21.
Fortescue Metals Group Limited
(ASX:FMG) has entered into an MOU with Vale S.A. The agreement proposes the formation of one or more joint ventures for the customers in the Chinese steel industry.
Fonterra Co-operative Group Limited
(ASX:FSF) has reduced its forecast Farmgate milk price for the 2015/16 season from $4.15 per kgMS to $3.90 per kgMS. Fonterra is forecasting its New Zealand milk production to be at least 4 percent lower than last season as New Zealand farmers respond to the ongoing low prices.
Codan Limited
(ASX:CDA) has entered into a US7.9 million contract to supply HF Radio equipment to a longstanding military customer.
Vicinity Centres
(ASX:VCX) has announced that Standard & Poor’s has revised its rating outlook for the shopping centre owner, manager and developer. The ratings outlook has been revised to positive from stable. Standard & Poor’s also affirmed its rating at A- for Vicinity Centres.
Best and worst performers
The best performing sector was REITs adding 1.3 per cent to close at 1331. The worst performing sector was Financials excluding REITs, losing 1.5 per cent to close at 6559 points.
The best performing stock in the S&P/ASX 200 was South 32
(ASX:S32), rising 5.19 per cent to close at $1.52. Shares in Seven West Media
(ASX:SWM) and Primary Healthcare
(ASX:PRY) also closed higher.
The worst performing stock was Worley Parsons
(ASX:WOR), dropping 9.47 per cent to close at $5.93. Shares in Fortescue Metals
(ASX:FMG) and Slater & Gordon
(ASX:SGH) also closed lower.
Commodities
Gold is trading at $US1,267 an ounce. Light crude is $1.98 up at $US37.90 a barrel. The Australian dollar is buying $US0.7430
