The Australian share market has closed firmly in the red today following losses on Wall St at the end of last week on lower commodity prices and after Myer’s disappointing debut on the stock exchange.
However sentiment improved after the Federal Government upgraded its outlook for economic and fiscal growth, forecasting economic growth of 1.5 per cent up from 0.5 per cent for the year to June 2010.
The S&P/ASX 200 Index closed 103 points lower at 4,540 while on the futures market, the SPI200’s down 81.
Re-capping today’s economic news: The ABS released data showing that Australia’s house price index for the third quarter rose 4.2 per cent, up 6.6 per cent compared to the third quarter last year.
And the TD Securities-Melbourne Institute’s monthly inflation gauge slowed to 1.2 per cent in October from 1.3 per cent in September.
To company news around this afternoon: National Australia Bank Ltd (ASX:NAB) has completed its 80.1 per cent acquisition of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand. NAB announced its strategic alliance with Goldman Sachs JBWere on July 29. CEO Cameron Clyne says the acquisition significantly enhances the company’s wealth offering and is a strong strategic fit with the banks ambition to strengthen NAB’s position as a leading provider in the wealth management segment. Shares in NAB closed 3.18 per cent weaker at $28.90.
Australia’s largest insurer QBE Insurance Group Ltd (ASX:QBE) has cut its forecasts for insurance revenue growth in response to the impact the continuing strength of the Aussie dollar is having on its overseas earnings. The insurer says it now expects gross written premium growth of 10 per cent to $14.4 billion in 2009, compared to its original guidance of $16.2 billion. QBE says even if there were positive gains in local currency gross written premium forecast in 2010 and the Aussie dollar were to stay at its current level, it does not see itself being able to reach the $16.2 billion figure next year either. Shares in QBE Insurance closed 2.72 per cent lower at $22.15.
Also making news: Department store chain Myer Holdings Ltd (ASX:MYR) made its debut on the ASX today trading below expectations. The stock opened at $3.88 and fell as low as $3.70 at one point, before closing $3.75. Myer was priced at $4.10 at the end of its book-build last week, valuing the company at $2.4 billion.
A joint venture between Australia’s Virgin Blue Holdings Ltd (ASX:VBA) and Delta Airlines (NYSE:DAL) has been given the initial go-ahead by the ACCC, increasing airline competition on the trans-Pacific routes. According to the carriers, the joint venture will enable the facilitation of seamless and integrated services between the US and Australia, and allow for the maintenance and expansion of existing Trans-Pacific scheduling.
Oil giant Woodside Petroleum Ltd (ASX:WPL) says it has agreed to sell its 51.55 per cent interest in the Otway Gas Project in Victoria to integrated energy company Origin Energy Ltd (ASX:ORG).
And AGL Energy Ltd (ASX:AGK) has responded to claims from the media that the company is unlikely to bid for Energy Australia saying they are incorrect.
In the best and worst performers: All sectors closed in the red today, however the sector with the smallest loss was the Real Estate Investment Trust index, which closed 4 points lower at 868 while the worst performing was the Industrials index; which lost 123 points at 3,684.
The best performing stock in the S&P/ ASX200 was Sundance Resources shares rose 6.45 per cent to $0.165. Shares in Aquila Resources and Sims Metal Management shares also gained.
The worst performing stock was Energy World Corp with shares falling 8.16 per cent to $0.45. Shares in Macquarie Infrastructure Group and Perpetual also closed lower today.
In commodities, gold is trading at $1045.80 U.S an ounce and light crude is up 55 cents at $77.55 U.S a barrel.
