The Australian share market has made a disappointing turnaround this session, defying positive leads from US markets. The local bourse was tracking well into the black by about 0.5 per cent at noon, but lost all momentum in afternoon trade and ended up closing the day 0.22 per cent lower. The big four banks were heavily sold off in the last two hours of trade, pulling the index into the red. The energy space also had a bad day with losses across the board.
The S&P/ASX 200 index closed 12 points down to finish at 5,208.
The value of trades was $6 billion on volume of 871 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), Telstra Corporation Limited
(ASX:TLS) and ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 6 points down.
Economic newsThe latest NAB Business survey has reported that the business confidence index rose slightly to +6 index points in August from +4 in July. The bank says the RBA’s 25bp cut to interest rates may have further bolstered sentiment in August.
Company newsEden Energy Limited
(ASX:EDE) has been placed into a trading halt pending the release of an announcement by the company. EDE says the announcement relates to a capital raising and will be lodged prior to the commencement of trading on Thursday. Shares in Eden Energy last traded at $0.23.
After months of speculation, JB Hi-Fi
(ASX:JBH) has finally entered a deal to purchase electronics retail chain, The Good Guys, for $870 million.
After making several cuts this year, dairy processing giant, Murray Goulburn
(ASX:MGC), says it will now increase milk prices for dairy farmers.
Fortescue Metals Group
(ASX:FMG) has issued a US$700 million repayment notice for its 2019 Senior Secured Credit Facility.
Best and worst performersThe best performing sector was Consumer Discretionaries adding 0.7 per cent to close at 2,160. The worst performing sector was Telcos, losing 0.9 per cent to close at 1,823 points.
The best performing stock in the S&P/ASX 200 was News Corp, rising 6.03 per cent to close at $18.99. Shares in Saracen Minerals and Credit Corp also closed higher.
The worst performing stock was Worley Parsons, dropping 2.54 per cent to close at $7.66. Shares in CYBG and Japara Healthcare also closed lower.
Commodities and the dollarGold is trading at $US1,329 an ounce.
Light crude is $0.16 higher at $US46.62 a barrel.
The Australian dollar is buying $US0.7528.
