The Australian share market has closed firmly in the red as trading losses across almost all sectors followed poor leads from overseas markets. Continuing worries about the health of the global economy saw a decline in investors’ confidence. The Australian dollar has also taken a dive and is now trading below 98 US cents for the first time since October.
The S&P/ASX 200 Index closed 76 points lower to finish at 4,624. On the futures market, the SPI200 down seventy eight points.
The Westpac-Melbourne Institute Index of economic activity shows economic activity has continued to slow in September, representing the fifth consecutive month of decline. Annualised growth rate came in at 4.6 per cent for September only 1.5 percentage points above its trend level.
The Australian Bureau of Statistics Index shows wages have grown at their fastest pace for nearly two years during the September quarter. Total hourly rates of pay, excluding bonuses, rose by 1.1 per cent in the September quarter compared to the June quarter.
Crude producer Karoon Gas Australia Ltd (ASX:KAR) says it has discovered light oil off the coast of Sao Paulo, Brazil. The company’s subsidiary Karoon Petroleo and Gas has entered into an agreement to acquire 20 per cent of the drilling block where the oil was found. The agreement, which will be subject to regulatory approvals, means Karoon will own 20 per cent interests of the site with the remaining 80 per cent held by Brazilian energy giant Petrobas. Shortly after coming out of a trading halt today, shares in Karoon closed 8.1 per cent lower at $8.40.
Perth iron ore miner Sphere Minerals Ltd (ASX:SPH) has announced it has changed its board after a takeover from Xstrata became unconditional. Sphere’s managing director Alexander Burns has resigned, cashing out for over $20 million. Non-executive directors Marcello Cardaci and Peter Donkin have also resigned while Xstrata global chief Peter Freyburg takes up the position of chairman. Joining Mr Freyburg are six Xstrata appointees that will make up the new board at Sphere. Last week, Xstrata completed a $514 million takeover of Sphere, acquiring 51 per cent of the company and today has moved to 67.97 per cent of Sphere. China-backed Sin Tang holds a 13.5 per cent stake in the company. Shares in Sphere Minerals closed at 1.32 per cent higher at $3.06.
Qantas Airways Ltd (ASX:QAN) is back in the news again, continuing to attract negative headlines. A Qantas Boeing 747 had to turn back to Johannesburg late yesterday after one of its engines suffered a bird strike, forcing the carrier to make an emergency landing. Qantas has had a string of problems with its planes’ engines over the past few weeks, most notably was the mid-air explosion of an engine on its Airbus A380 over Indonesia on November 4.
Centro Properties Group (ASX:CNP) says the competitive market process it has entered into will determine the groups' future as it might result in asset sales or a change in control of the company. Centro’s chairman Paul Cooper told the group’s annual general meeting that the process would help the firm evaluate any interest received.
BHP Billiton Ltd (ASX:BHP)’s chairman Jac Nasser says the company will continue to pursue assets, despite notching up a bill of around $875 million in failed merger and acquisition bids over the past three years.
AXA Asia Pacific Holdings (ASX:AXA) says the majority of its independent directors endorse the proposed deal between its majority shareholders AXA SA and AMP Ltd.
In the best and worst market performers: The best performing sector was Healthcare which closed 49 points lower to 8,383. The worst performing sector was Energy with the index falling 435 points to 15,162. The best performing stock in the S&P/ ASX200 was Ausenco as shares were 16.87 per cent higher to $2.91. Shares in Lynas Corporation and Lend Lease Group also closed higher. The worst performing stock was Karoon Gas. Shares in Mt Gibson and Pan Aust also closed in the red.
In commodities, gold is trading at $US1,338 an ounce. Light crude is down 11 cents to $US82.23.
