Market Wrap: Aus shares close 1.42% lower

Market Reports

Well it was a dismal session for the local share market today, opening in the red and continuing to lose momentum throughout the session closing the day 1.42 per cent lower. The energy space was the biggest casualty with losses across the board after another fall in the price of oil overnight. Not a good day either for the financials or materials sectors, with all of the big four banks losing 1 to 2 per cent of value, as well as BHP shedding more than 3 per cent. 
 
The S&P/ASX 200 index closed 71 points lower to finish at 4,924. 
 
The value of trades was $5 billion on volume of 735 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 75 points lower.
 
Economic news

The Reserve Bank of Australia (RBA) has once again kept the official cash rate on hold at 2 per cent. It’s the 11 month in a row the RBA has kept rates on hold, after it made two rate cuts in February and again in May last year. The central bank noted the global economy is continuing to grow, but a slightly slower pace than earlier expected. 
 
Company news

Iron Road Limited (ASX:IRD) has announced the signing of a Strategic Co-operation Agreement with a wholly owned subsidiary of China Railway Group Limited, China’s largest rail engineering firm. The agreement will advance the Central Eyre Iron project with the aim of executing a project commercialization program over a 12 month period. Shares in Iron Road closed 22.73 per cent higher at $0.14. 
 
Nine Entertainment Co Holdings Limited (ASX:NEC) says revenues were down around 11 per cent against Q3 of 2015, due to softer than anticipated ratings.
 
Yowie Group Limited (ASX:YOW) says the company has significantly expanded its manufacturing capacity in the US, by entering into a long-term manufacturing agreement with Madeleine Chocolate Company.
 
Best and worst performers

The sector with the least losses was Telcos shedding 0.1 per cent to close at 1,940. The worst performing sector was Energy, losing 3.3 per cent to close at 7,173 points.
 
The best performing stock in the S&P/ASX 200 was Select Harvests, rising 8.97 per cent to close at $4.13. Shares in Broadspectrum and APN Outdoor also closed higher.
 
The worst performing stock was Nine Entertainment, dropping 23.68 per cent to close at $1.16. Shares in Seven West Media and Liquefied Natural Gas also closed lower. 
 
Commodities and the dollar

Gold is trading at $US1,228 an ounce.
Light crude is $1.33 lower at $US35.46 a barrel.
The Australian dollar is buying $US0.7603. 
 

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