The Australian share market has fallen sharply today to a seven week low, the largest one-day drop since Japan’s nuclear crisis. An unexpected fall in employment last month and weak commodity prices pushing stocks lower.
The S&P/ASX200 Index closed 84 points lower at 4,696. On the futures market, the SPI is 97 points lower.
Company news: Qantas Airways Ltd (ASX:QAN) engineers have called off industrial action planned for tomorrow. The Australian Licenced Aircraft Engineers Association had planned a one hour work stoppage. The industrial action was cancelled due to concerns about the growing number of technical faults emerging on Qantas aircraft in the last 48 hours. Qantas shares closed 0.93 per cent weaker at $2.12.
Singapore Telecommunications Ltd (ASX:SGT) reported a 2.3 per cent fall in fourth quarter net profit. The profit slump was due to the poor performance of its Indian unit. Australian subsidiary Optus recorded strong growth revenue and earnings. Optus’ mobile customer base exceeded nine million customers for the first time. SingTel shares closed up 2.13 per cent to $2.40.
AMP Ltd (ASX:AMP) will oppose a key insurance reform proposed by the federal government. AMP chairman Peter Mason warned of the “unintended consequences” of removing life insurance commissions in superannuation.
Meanwhile, Fairfax Media Ltd (ASX:FXJ) has confirmed it will outsource all subediting work from its Sydney and Melbourne newspapers. The decision will result in the loss of 82 jobs. The outsourcing and other strategic initiatives will produce savings of about $15 million per annum.
James Warburton has been cleared to start at Network Ten Ltd (ASX:TEN) as chief executive on January 1, according to the NSW Supreme Court ruling. That’s more than five months after the July start date Ten had announced, but not as late as the October 2012 start date Seven was hoping for.
And Suncorp Group Ltd (ASX:SUN) says its credit quality remained "relatively stable" during the first three months of this year despite floods and storms.
Today’s sector with the smallest losses was Telco Services with the index falling 3 points to close at 1,014. The worst performing sector was Energy, falling 445 points to close at 16,058.
The best performing stock in the S&P/ASX200 was Alesco Corporation, shares gained 2.84 per cent to close at $3.26. Shares in Singapore Telecommunications Ltd and BlueScope Steel Ltd also closed higher today. The worst performing stock was Bow Energy, losing 8.05 per cent to close at $0.80. Shares in Lynas Corporation and Aquila Resources also closed in the red today.
In commodities, gold is trading at $US1,497 an ounce and Light crude is up 20 cents at $US98.41 a barrel.
