Australian stocks sank today in a broad based sell off after U.S. markets posted sharp losses overnight. Lower commodity prices hit local resources while the lower Aussie dollar hit importers. The banks also lost ground.
The S&P/ASX 200 Index closed 110 points lower at 4,575 while on the futures market, the SPI200’s down 131.
The economic news of the day was the latest Housing Industry Association survey of Australia’s largest builders which showed new home sales fell by 4.5 per cent in September.
To company news around this afternoon: Flight Centre (ASX:FLT) today reconfirmed its full year pre-tax profit guidance of between $125 and $135 million and said it is happy with its progress so far this year. At its annual general meeting today managing director Graham Turner told shareholders that more stable trading conditions had caused domestic travel spending to be reasonable, while corporate travel results continued to be affected by the global financial crisis. Flight centre also said its U.S. results were so far better than expected and shares jumped 3.72% to $17.01.
Gold miner Newcrest Mining (ASX:NCM) said that its outlook for gold remains positive but said that production will continue to decline in the future. Chairman Don Mercer told shareholders today that demand for gold as a safe haven of value has strengthened during the recent global uncertainties but demand for jewellery has been relatively flat. Newcrest Mining shares ended the session 4.28% lower at $32.46.
Also making news: Toll Holdings (ASX:TOL) said today that economic conditions remain challenging but volumes appear to be improving. The logistics company also said its financial performance is in line with expectations and that takeover opportunities were promising.
GWA International (ASX:GWT) said at its annual general meeting today that despite a slight gain in earnings there has been no improvement in underlying demand since the start of the financial year. The bathroom and homewares supplier said that housing approvals had still not shown any improvement, despite clear signs of an inadequate supply of housing, further pressuring the stock today.
Taking a look at some of the stories covered in our earlier reports: Australia and New Zealand Banking Group (ASX:ANZ) shares declined today as it reported an 11 per cent fall in net profit to $2.943 billion for the full year.
AGL Energy Ltd (ASX:AGK) has forecast underlying net profit after tax for fiscal 2010 of between $390 million and $420 million. AGL also said today that it may raise equity to buy assets as part of its growth plan.
In the best and worst performers: The best performing sector the close was the Healthcare index, up 46 points at 8,467. The worst performing by percentage points was the Real Estate Investment Trust index; which lost 38 points to 841.
The best performing stock in the S&P/ ASX200 was Flight Centre as it reconfirmed its outlook. Shares in Goodman Fielder and Graincorp also improved.
The worst performing stock was Sundance Resources and shares lost 9.38% to $0.145. ING Industrial Fund and Elders shares also closed lower today.
In commodities, gold is trading at $1,032.15 U.S an ounce and light crude is down 21 cents at $77.25 U.S a barrel.
