Following negative leads the Australian share market has started the week 1.3 per cent down. Declines were accelerated by losses in the energy and resource sectors, as lower commodity prices weighed on market sentiment.
The S&P/ASX200 Index dropped 61 points to close at 4,650. On the futures market, the SPI is 45 point lower.
Economic news: The Australian Bureau of Statistics has revealed that housing finance approvals in March dropped to the lowest level in over a decade. Home loans approved fell 1.5 per cent in the month, to a seasonally adjusted 44,968. Last year’s November interest rate hike and this year’s Queensland floods have been attributed for the decline. The ABS has also reported that new motor vehicles sales declined 3.5 per cent in April, after a seasonally adjusted rise of 3.4 per cent the month before. The result was pulled down by sales of sports utility vehicles, slumping by near 10 per cent.
Company news: Macarthur Coal Ltd (ASX:MCC) has boosted its full year net profit guidance following the selldown of 13.76 per cent of its interest in the Codrilla coal project in Queensland to the Coppabella Moorvale Joint Venture. The coal miner now expects to deliver a net profit of up to $260 million in the 2011 financial year, higher than earlier guidance of up to $205 million. Macarthur’s stake in the Codrilla project will stand at 73.3 per cent, pending approval from the Foreign Investment Review Board. Shares in Macarthur Coal firmed 0.09 per cent today to close at $11.43.
Newly formed Seven West Media (ASX:SWM) has cut its guidance by as much as $20 million, blaming softer than expected advertising revenue. Earnings before interest, tax, depreciation and amortisation are now expected to reach between $610 - $620 million in the 2011 financial year. Chairman Kerry Stokes today also announced the appointment of Seven West Media’s managing director and CEO, David Leckie, to the company’s board of directors. Shares in Seven West Media ended the day 2.76 per cent lower at $4.23.
Amid the threat of industrial action Qantas Airways Ltd (ASX:QAN) chief Alan Joyce has today blasted union leaders for “scaremongering" and demanding "reckless" and "unrealistic" wage claims that Mr Joyce says the airline cannot approve.
Whitehaven Coal (ASX:WHC) ended the day over 12 per cent down after the coal miner announced it has abandoned plans to sell the company and will instead focus on developing its existing assets.
Paint maker DuluxGroup (ASX:DLX) has doubled its first half earnings and says full year profit is likely to be more than $71.5 million.
While Leighton Holdings Ltd (ASX:LEI) has booked a $382 million loss for the nine months to March, the property developer has confirmed it expects to return to profitability in the 2012 financial year.
Best and worst performers: Most closed in the red, but Telco Services closed in positive territory, adding 4 points to close at 1,023. The worst performing sector was Energy, dropping 317 points to close at 15,759. The best performing stock in the S&P/ASX200 was James Hardie Industries shares rose 3.09 per cent to close at $5.67. Shares in Leighton Holdings and Boart Longyear also closed in positive territory today. The worst performing stock was Gunns, shedding 13.79 per cent to close at $0.375. Shares in Whitehaven Coal and Hastie Group also tumbled today.
Commodities: Gold is trading at $US1,492 an ounce. Light crude is down $1.26 cents at $US98.39 a barrel.
