The Australian share market finished down 0.8 per cent today, easing this afternoon after all major banks closed in the red and resources stocks retreated.
The S&P/ASX200 Index is down by 41 points to close at 4,785. On the futures market, the SPI is down by 35 points.
In economic news, just as economists had predicted, the Reserve Bank of Australia has kept the cash rate steady at 4.75 per cent. Governor Glenn Stevens said the rising exchange rate will help hold down consumer prices, but inflation will continue if economic conditions evolve broadly. The Australian government today also named Rod Sims as the next chairman of the ACCC, and Greg Medcraft as the chairman of ASIC.
Turning to company news, shares in Fairfax Media (ASX:FXJ) tumbled 8.02 per cent to close at $1.205, after the publisher’s chief executive Greg Hywood sent a memo to staff today that another round of staffing redundancies are on the cards, a move that will cost the company about $25 million. Staff have backlashed, and will hold a stop work meeting tomorrow to meet with the Media, Entertainment and Arts Alliance. The company said a rate of decline in advertising levels, as well as revenues being affected by natural disasters, are the catalyst for the changes.
Summer’s certainly over for clothing company Billabong International Limited (ASX:BBG), who was downgraded to ‘sell’ by CBA equities today. CBA told the Australian Financial Review that Billabong was unlikely to deliver its cost of capital over the next three years because of the high Aussie dollar, and an uneasy level of debt. Shares in Billabong rose 1.34 per cent today, to close at $6.82.
Transfield Services Limited (ASX:TSE) have been given a neutral rating by UBS analysts this afternoon, on the back of price appreciation. UBS has forecasted the company’s earnings before taxes for the full year to be about $98 million, instead of the adjusted guidance of $104 million.
And Rio Tinto (ASX:RIO) shareholders are reported to be about to lodge a protest vote against a proposed pay rise for Tom Albanese. This afternoon’s The Australian website says ISS Risk Metrics have recommended shareholders vote against the company’s remuneration report.
ANZ Banking Group (ASX:ANZ) has posted a record first half profit, however has still warned that the domestic economy faces challenging conditions.
And Stockland (ASX:SGP) says it is on track to achieve earnings per share growth of 8.5 per cent, in the 2011 financial year.
The best performing sector was Telco, up by 3 points to close at 988. The worst performing sector was materials, falling 185 points to close at 13,787.
The best performing stock in the S&P/ASX200 was Hastie Group shares rising 4.65 per cent to close at $$0.22.5. Shares in One Steel and Ardent Leisure also closed in positive territory.
The worst performing stock was Fairfax Media, shedding 8.02 per cent to close at $1.205. Shares in Energy Resources of Australia and Kingsgate Consolidated Limited also closed weaker today.
In commodities, gold is trading at $US1,548 an ounce and Light crude is down 61 cents at $US112.91 a barrel.
