The Australian share market slumped 1.5 per cent at close, extending earlier falls as news broke that Japan had raised its nuclear disaster rating to the highest level following more aftershocks. At home energy and resource stocks widened losses throughout the day, and the Australian dollar lost ground from earlier heights.
The S&P/ASX200 Index dropped 73 points to close at 4,899. On the futures market, the SPI is down 84 points.
Economic news: National Australia Bank Ltd (ASX:NAB) business survey for March showed business conditions rose 11 points to plus 9 index points, over the zero level that separates expansion from contraction and at its highest level since March 2010. However, NAB’s index of business confidence dropped 5 points, also, to plus 9 points. The results show that Australia’s economy is emerging, albeit slowly, from a challenging start to a year that was significantly impacted by widespread natural disasters.
Company news: Shares in Fortescue Metals Group Ltd (ASX:FMG) fell today after the iron ore miner announced it had shipped 16 per cent less iron ore in the March quarter than a year earlier. The output result was impacted by heavy rain in the Pilbara region of Western Australia, and fell at the lower end of Fortescue’s earlier guidance. Shares in Fortescue Metals fell 3.68 per cent today and closed at $6.54.
The head of Woodside Petroleum Ltd (ASX:WPL) Don Voelte has spoken out again in an attempt squash the speculation that BHP Billiton Ltd (ASX:BHP) is planning to swoop on a stake in the oil and gas producer. Mr Voelte admitted there is a lot of speculation at the moment and confirmed, that with the continuous disclosure laws in Australia the company can't hide its intensions, advising, that if a takeover proposal were to eventuate Woodside would have to take it immediately to the marketplace. Shares in Woodside Petroleum dropped 2.76 per cent to close at $46.83.
The worst performer of the day was Hastie Group Ltd (ASX:HST) plunging 73.51 per cent. Only one day after posting a first half net loss of $95 million, Reuters reports the provider of services to the building sector today reached a standstill agreement with its lenders and considered options to reduce debt.
The head of Seven Group Holdings Ltd (ASX:SVW) Kerry Stokes has reportedly been accused of contempt of court, for comments he made over Seven Media Group’s executive James Warburton, amid the ongoing New South Wales supreme court case between Seven and Mr Warburton.
Investors didn’t respond too well to first quarter earnings from Alcoa’s (ASX:AAI) American parent, shares in the aluminium producer tumbled 10.48 per cent after reporting a 22 per cent jump in revenue to $US5.96 billion.
Likewise, investors weren’t too impressed with Iluka Resources Ltd (ASX:ILU) shares fell 2.2 per cent after the mineral sands producer booked a 51 per cent rise in first quarter revenues.
In the best and worst performers, all closed in the red: The sector with the smallest losses was Consumer Discretionary with the index easing 9 to close at 1,473. The worst performing sector was Energy, shedding 535 points to close at 17,201. The best performing stock in the S&P/ASX200 was Henderson Group shares rose 2.28 per cent to close at $2.69. Shares in Myer Holdings and Ten Network Holdings also closed in positive territory today. The worst performing stock was Hastie Group, plunging 73.51 per cent to close at $0.245. Shares in Roc Oil Company and Carnarvon Petroleum also closed in the red today.
CommoditiesGold is trading at $US1,456 an ounce and Light crude is $1.44 cents down at $US108.48 a barrel.
