Australian shares have closed the session lower today following Wall St’s slide into the red at the end of last week, with the major banks like the Commonwealth Bank and NAB weighing down the market.
And RBA assistant governor in charge of economics, Phillip Lowe has fuelled the prospect of a further interest rate rise next month after telling an investment conference that the central bank’s focus is on inflation and the need to return to more normal levels of interest rates. According to Reuters Mr Lowe also says Australia is faring better than most advanced economies due to its strong ties with Asia.
The S&P/ASX 200 Index closed 44 points lower at 4,793 while on the futures market, the SPI200’s down 42.
To company news around this afternoon: Following much speculation this morning, Oil Search Ltd (ASX:OSH) has launched an $895 million capital raising to help it meet its equity obligations for the PNG LNG Project and fund other gas opportunities. The company is to raise the funds through an institutional share placement of 152 million shares at $5.90 a share, and also announced a share purchase plan of up to $15,000 per shareholder. The company says it decided to raise the funds needed via a share placement after it terminated discussions for the sale of a stake in the PNG LNG Project to International Petroleum Investment Corporation. Oil Search shares last traded at $6.75.
Engineering and infrastructure company Downer EDI Ltd (ASX:DOW) says its mining division has secured a further $170 million in contracts this financial year. CEO Geoff Knox says that in Western Australia the mining division has secured a 33 month contract with BHP Billiton Iron Ore to quarry and crush 1.6 million bank cubic metres of fresh basalt at its Redmont Quarry southeast of Port Hedland. Mr Knox says the company has also signed a second contract with Fortescue Metals Group Ltd (ASX:FMG) to provide blasting services to its Cloudbreak and Christmas Creek mines. And in QLD Downer has secured an extension to its Alliance Agreement with Cracow Mining Joint Venture managed by Newcrest Mining Ltd (ASX:NCM). Downer says these projects take the value of new mining contracts and renewals so far this financial year to over $670 million and work in hand to over $2.7 billion. Downer EDI shares closed 0.45 per cent higher at $8.97.
Also making news: Proceedings have begun in the Victorian Supreme Court against former CEO of Agribusiness service provider AWB Ltd (ASX:AWB) Andrew Lindberg, over secret kickbacks to Iraq. According to The Australian, the Australian Securities and Investments Commission alleges that Mr Lindberg knew or should have known about hundreds of millions of dollars that was being provided to Iraq through the guise of sham trucking fees added to AWB’s wheat contracts, in breach of UN sanctions.
Oil and gas explorer Drillsearch Energy (ASX:DLS) has commenced legal action against former CEO of its 79.5 per cent owned Canadian subsidiary Circumpacific Energy Corp, Peter Simpson and two other directors Roger Tidmarsh and Paul Johns, following their refusal to step aside from their director duties and their attempt to dispose of material assets of Circumpacific.
Fortescue Metals Group Ltd (ASX:FMG) has posted a net loss of US$18 million for the three months the September 30 due in part to a note liability and a foreign exchange adjustment.
And leisure and entertainment services provider Tabcorp Holdings Ltd (ASX:TAH) says revenue grew 4.4 per cent in the first quarter of the financial year, with all three divisions; gaming, casino’s and wagering contributing to growth.
In the best and worst performers: The best performing sector at close was the Consumer Staples index, up 78 points at 7,564 while the worst performing was the Financials excluding Real Estate Investment Trust index; which lost 119 points at 5,736.
The best performing stock in the S&P/ ASX200 was OM Holdings shares rose 4.97 per cent to $1.90. Shares in Spark Infrastructure Group and AWB shares also gained.
The worst performing stock was Elders with shares falling 5.26 per cent to $0.18. Shares in Energy World Corp and Avoca Resources also closed lower today.
In commodities, gold is trading at $1052.50 U.S an ounce and light crude is up 7 cents at $78.60 U.S a barrel.
