The major banks and miners pushed the Australian share market 0.9 per cent down today. After a series of economic reports, falling commodity prices and a currency sell off, the local bourse closed at a five-week low.
The S&P/ASX200 Index closed 45 points lower at 4,740. On the futures market, the SPI is 59 points down.
Economic news: The Housing Industry Association has shown new home sales rose for the third straight month in 2011. In March new sales jumped 4.3 per cent, from a lift of 0.6 per cent in February.The result was underpinned by detached house sales, up 5.8 per cent in the month.
The Australian Industry Group/Commonwealth Bank revealed that activity in the services sector expanded last month after five months of dropping. The Australian Performance of Services Index gained 5 points to 51.1 in April, over the 50-level that separates expansion from contraction.
The Federal Chamber of Automotive Industries reported new car sales fell 8.8 per cent in April from the year before, to 74,214 vehicles last month. The timing of the Easter and Anzac Day holidays was attributed for the decline.
Company news: Fortescue Metals Group Ltd (ASX:FMG) has lost its fight to score access to Rio Tinto Ltd’s (ASX:RIO) private railways in the Pilbara region of Western Australia. The Federal Court has today upheld a ruling that restricts the iron ore miner from accessing Rio’s key Hamersley line. Shares in Fortescue Metals Group ended the day 1.5 per cent higher to close at $6.09.
Telstra Corporation Ltd (ASX:TLS) has admitted that its latest customer numbers have fallen in the first three month of 2011. Speaking at the Australian Equity Conference, CEO David Thodey said the telco added 191,000 fewer mobile customers in the March quarter this year than in the December quarter last year. Shares in Telstra ended the day 1.04 per cent up, closing at $2.92.
Oil and gas producer Woodside Petroleum Ltd (ASX:WPL) has struck a deal to raise $US700 million in corporate bonds in the US to repay debt maturing in 2011 and fund exploration.
Logistics company Toll Holdings Ltd (ASX:TOL) says it has established a $US400 million three year multi-currency syndicated debt facility as part of its debt refinancing program to replace existing facilities.
Shares in Westpac Banking Corporation (ASX:WBC) fell 2.5 per cent today, despite the bank posting first half total cash earnings of $3.17 billion and declaring a record interim dividend.
Shares in Coca-Cola Amatil Ltd (ASX:CCL) also slipped. The beverages giant forecast five per cent growth in the first half, and, also warned it may be forced to take some operations overseas because of the rising Australian dollar.
Best and worst performers: The best performing sector was Telco Services with the index rising 10 to close at 998. The worst performing sector was Financials Excluding Real Estate Investment Trusts, falling 93 points to close at 5,216. The best performing stock in the S&P/ASX200 was Extract Resources shares gained 14.22 per cent to close at $7.63. Shares in Kingsgate Consolidated and PanAust also closed higher today. The worst performing stock was Carnarvon Petroleum, slumping 10.64 per cent to close at $0.21. Shares in Hastie Group and Eldorado Gold also closed in the red today.
Commodities: Gold is trading at $US1,533 an ounce and Light crude is down $0.32 cents at $US110.73 a barrel.
