Following disappointing leads from Wall Street and a horror trading session for the Australian market yesterday, the local bourse once again spent the day with its head under water and ended up closing the session 1.08 per cent lower. Investors nervously disposed of the miners and the big four banks on the back of Brexit fears and uncertainty surrounding the Fed’s next move when it comes to US interest rates. We saw some stocks bounce back today after yesterday’s brutal losses; Mesoblast jumped over 11 per cent after shedding more than 40 per cent on Tuesday and LNG gained almost 17 per cent at the final bell.
The S&P/ASX 200 index closed 56 points lower to finish at 5,147.
The value of trades was $6.1 billion on volume of 895 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 ANZ Banking Group
(ASX:ANZ),
On the futures market the SPI is 50 points lower.
Economic news
Consumer sentiment has slipped in June according to latest figures from Westpac and the Melbourne Institute. Consumer Sentiment dropped 1 per cent to 102.2 for the month of June from 103.2 in May. Readings above 100 still indicate there are more optimists than pessimists.
Company news
Oz Minerals says it has reached a binding agreement to settle the class action proceedings that commenced in the Federal Court of Australia in February. The proceedings were filed by former Zinifex shareholders who held Zinifex shares in July 2008 and received shares in Oz Minerals following the merger between Oxiana and Zinifex. The agreed settlement amount is $32.5 million of which Oz Minerals net contribution to the settlement is $24 million. Shares in Oz Minerals closed 3.78 per cent lower at $5.35.
a2 Milk Company
(ASX:A2M) has released an optimistic forecast on its upcoming financial results, saying cash on hand will exceed $50 million in the second half of the year.
Virgin Australia Holdings Ltd
(ASX:VAH) has announced it intends to raise $852 million in equity, through a pro-rata entitlement offer to shareholders at 21 cents per share.
Pacific Energy Limited
(ASX:PEA) has entered the African energy market by incorporating a subsidiary company in Johnnesburg.
Best and worst performers
The sector with the least losses was Staples losing 0.1 per cent to close at 8,278. The worst performing sector was Financials excluding REITs, losing 1.7 per cent to close at 6,280 points.
The best performing stock in the S&P/ASX 200 was Liquefied Natural Gas, rising 16.89 per cent to close at $0.86. Shares in Mesoblast and Saracen also closed higher.
The worst performing stock was Select Harvests, dropping 4.75 per cent to close at $6.62. Shares in Oz Minerals and Sandfire Resources also closed lower.
Commodities and the dollar
Gold is trading at $US1,286 an ounce.
Light crude is $0.46 lower at $US49.06 a barrel.
The Australian dollar is buying $US0.7380.
