The Australian share market closed half a percent lower today. Local shares were unable to follow Wall St’s strong lead, the major banks dragging stocks lower, and shares in the Australian Securities Exchange operator, ASX, falling as doubts grew that the proposed merger with its Singapore counterpart will face more regulatory hurdles.
The S&P/ASX 200 Index is 22 points lower to finish at 4,688. On the futures market, the SPI200 is down 25 points.
To company news: Billabong International Ltd (ASX:BBG) says it continues to be impacted by a strong Australian dollar, the group forecasting flat growth in the current fiscal year. As a business with more than 80 per cent of revenues sourced from outside Australia Billabong’s bottom line feels the pinch when overseas revenues are translated back into Aussie dollars. The surf-wear fashion retailer says that in constant currency terms it is expecting between 2-8 per cent net profit after tax growth in fiscal 2011. Shares in Billabong International closed 0.13% up at $7.82.
WorleyParsons Ltd (ASX:WOR) says its fiscal 2010 result was disappointing, and has forecast current year earnings will be weighted to the second half of the financial year. WorleyParsons profit fell from $400.9 million last year to $303 million in the year to 30 June 2010. The energy and resource contractor says many regions in which it operates continue to feel the effects of the global economic downturn, and that the current fiscal year has started in line with its expectations. Shares in WorleyParsons closed 3.58% down at $22.36.
Transurban Group (ASX:TCL) has boosted its distribution forecast. In fiscal 2010 the group increased its distribution by 9 per cent to 24 cents which is forecast to rise to at least 26 cents in fiscal 2011.
QBE Insurance Group Ltd (ASX:QBE) has blamed soft market conditions and competition from new business for putting its earnings under pressure, though says its insurance business and portfolios remain sound.
Commonwealth Bank of Australia’s (ASX:CBA) CEO Ralph Norris has cautioned Australian banks are likely to experience higher funding costs in the short to medium term, a warning that might lead to interest rate increases over and above any official rate rises.
Bendigo and Adelaide Bank Ltd (ASX:BEN) has struck a $165 million deal to purchase Elders Ltd (ASX:ELD) 40 per cent stake in Rural Bank, which now gives Bendigo and Adelaide Bank full ownership of Rural Bank.
In the best and worst performers: The best performing sector at close was Telco Services with the index up 5 points to 917. The worst performing sector was Real Estate Investment Trusts with the index closing down 9 points to 861. The best performing stock in the S&P/ ASX200 was Macquarie Atlas Roads shares were 4.66% stronger at $1.46. Shares in Elders and Medusa Mining also closed higher. The worst performing stock was ASX shares falling 7.38% to $38.67. Shares in Karoon Gas Australia and Lynas Corporation also closed weaker today.
In commodities, gold is trading at $1340 US an ounce. And light crude is down $0.39 at $82.13 US a barrel.
