The Australian share market closed the day 0.7 per cent lower, with most sectors closing in the red. Industrial and resource stocks dragged the market lower.
The S&P/ASX200 Index eased 32 points to close at 4,852, while for the week it was down 88 points. On the futures market, the SPI is down 30 points.
To the US: on Wall Street, the DOW Jones Industrial Average was down 95 points over the four trading days this week. The S&P 500 Index was down 14 points, NASDAQ was down 20 points and the 100 Index was down 10.
Company news: Macquarie Bank has given Woolworths Ltd (ASX:WOW) a two-notch downgrade. Macquarie Bank analyst Greg Dring says Coles is convincingly winning the price war with Woolworths, and change is needed to compete and secure future earnings. In a research note to clients, Dring said hypothetically asked if CEO designate, Grant O’Brien, is a change agent. Shares in Woolworths closed $0.56 lower at $26.53.
Oaks Hotels and Resorts Ltd (ASX:OAK) has increased its earnings outlook, but it might take a $5.3 million hit on the company’s Dubai operations. The chair of the company, Douglas Wong, says it expects earnings to be more than $30 million before interest, tax and depreciation. But the company is in a legal dispute with a developer in Dubai, which means it might be taking a non-cash $5.3 million impairment against the carrying value of its assets in the country. Shares in Oaks Hotels sagged 1.11 per cent lower at 0.445.
Murchison Metals Ltd’s (ASX:MMX) $6 billion Oakajee Port and Rail project is facing yet another round of potential hurdles, this time amid fears the Federal Government's carbon tax could kill the magnetite iron ore industry.
Telecom Corp of New Zealand (ASX:TEL) has sold its 49 per cent stake in Yahoo!Xtra back to Yahoo!7, who will now rebrand the company as Yahoo! New Zealand. Telecom was up by 1.07 per cent to close at $1.495.
The best and worst performers: The best performing sector was the Real Estate Investment Trusts, advancing just under a point to close at 855. The worst performing sector was Health Care, easing 134 points to close at 8,837. The best performing stock in the S&P/ASX200 was Paperlinx shares gained 4.69 per cent to close at thirty three and a half cents. Shares in Alacer Gold and St Barbara ended the week stronger. The worst performing stock was Infigen Energy, dropping 7.41 per cent to close at $0.375. Shares in Hastie Group and Canarvon Petroleum also closed in the red today.
Commodities: Gold is trading at $US1,476 an ounce and is up by $3.68 on the week. Light crude is up 15 cents at $US108.26 a barrel.
The Australian dollar is trading at $1.0526, and is down by a third of a cent on the week.
