The Australian share market dropped over 1 per cent today, posting its biggest weekly fall in more than nine months. Rising oil prices continued to weigh on investors, with sentiment dipping further amid renewed European debt concerns.
The S&P/ASX200 Index fell 55 points to close at 4,645 while on the week it was down 219 points. On the futures market, the SPI is down 58 points.
To the US: On Wall Street, the DOW Jones Industrial Average was down 185 points over the four trading days this week. The S&P 500 Index was down 26 points, NASDAQ was down 84 and the 100 Index was down 76.
Economic news: China’s National Bureau of Statistics has revealed that the nation’s consumer price index exceeded the official target of 4 per cent, rising 4.9 per cent in February, compared to the year before. Despite the government’s attempts to curb inflation, the key gauge was unchanged from the month before, fuelling concerns that further tightening measures could be imminent.
Company news: AGL Energy Ltd (ASX:AGK) has announced that it will construct a $45 million co-generation plant in Victoria for Qenos Pty Ltd, describing the project as an investment in sustainability. The energy producer and retailer says the facility is the largest industrial co-generation plant to be built in a decade, which will secure Qenos’ energy supply while preparing for the eventual introduction of a carbon tax. AGL expects the plant to reduce emissions from Qenos by 100,000 tonnes per year, which represents taking around 24,400 cars off the road. Shares in AGL Energy dropped 1.48 per cent to close at $14.01.
Maintenance group Transfield Services Ltd (ASX:TSE) has scored a 15-month contract with the federal government to manage the Home Insulation Safety Program. The government’s troubled $2.45 billion insulation scheme was only last year scrapped following the death of four installers, home fires and claims of dangerous working conditions. Transfield Services will immediately begin delivering safety inspections and repairs to ceiling insulations in over 20,000 homes across Australia, installed under the federal government's Home Insulation Program. Shares in Transfield Services fell 1.51 per cent to close at $3.27.
Tower Australia Group Ltd (ASX:TAL) expects to incur expenses of up to $20 million in the current financial year, following the impact of the Christchurch earthquake in New Zealand. The insurance company has also warned that customer premiums are likely to rise, given the increase in reinsurance premiums.
Shares in Continental Coal Ltd (ASX:CCC) rose today after the South African focused coalminer issued a positive outlook. Continental confirmed it is on track to surpass budgeted export sales of 120,000 tonnes and reach targeted sales of 141,000 tonnes in the March quarter.
In the best and worst performers and all closed in the red: The sector with the smallest losses was Real Estate Investments Trusts with the index easing 16 points to close at 862. The worst performing sector was Utilities, dipping 36 points to close at 4,102. The best performing stock in the S&P/ASX200 was Gindalbie Metals shares rose 3.96 per cent to close at $1.05. Shares in Aurora Oil & Gas and Western Areas also closed in positive territory today. The worst performing stock was Gunns, shedding 11.11 per cent to close at $0.56. Shares in Kagara and St Barbara also closed weaker today.
Commodities: Gold is trading at $US1,412 an ounce and is down $16.26 on the week. Light crude is 47 cents down at $US102.23 a barrel. The Australian dollar is trading at 1.0031 US cents, down slightly on the week.
