The Australian share market plunged today, falling 2.3 per cent, the largest one day fall in a year with losses spread over all sectors. Disappointing US economic news is being blamed for sending world-wide stock markets and commodity prices tumbling.
The S&P/ASX200 Index fell 107 points to close at 4,600. On the futures market, the SPI is down 104 points.
Turning to company news, BHP Billiton Ltd (ASX:BHP) has exercised its right to buy a gas exploration permit offshore Western Australia from Tap Oil Ltd (ASX:TAP). The move has sidelined the Japanese consortium that Tap had agreed to sell its 25 per cent stake to. Tap will retain a non-operating 20 per cent stake. BHP shares closed the day 2.2 per cent lower at $43.55.
Australia and New Zealand Banking Group (ASX:ANZ) executive Philip Chronican says a recent increase in mortgage delinquencies is concerning. The Australian division chief executive revealing he believes the problem will not be solved quickly and couldn’t say if the situation would get better or worse in the near future. He blamed the increase on the rising cost of living. ANZ shares fell 2.55 per cent, to close at $21.44.
Also making news, Qantas Airways Ltd (ASX:QAN) carried 7 per cent more passengers in April compared with the year prior. But Qantas says the periods aren’t comparable due to the corresponding period of April 2010 being adversely affected by flight cancellations due to the Icelandic volcano eruptions closing European airspace.
The Wesfarmers Ltd (ASX:WES) managing director for Bunnings says he’s willing to fight to retain market share in the $36 billion home improvement sector in the face of stiff competition from Woolworths Ltd (ASX:WOW).
Taking a look at earlier headlines: BHP Billiton Ltd’s (ASX:BHP) fourth-quarter production report is likely to be impacted by a train derailment in the Pilbara region of Western Australia.
And Rio Tinto Ltd (ASX:RIO) and Chinese alumina producer Chinalco have formed a joint venture for exploration in China.
To the best and worst performing sectors now: The sector with the smallest losses was Utilities, down by 36 points to close at 4,309. The worst performing sector was Financials excluding Real Estate Investment Trusts, down 145 points to close at 4,861.
The best performing stock in the S&P/ASX200 was Aurora Oil & Gas Ltd, shares rising 8.96 per cent to close at $3.65. Shares in Austar United Communications Ltd and Sigma Pharmaceuticals Ltd also closed in positive territory.
The worst performing stock was Hastie Group Ltd shedding 8.16 per cent to close at 0.225 cents. Shares in Gunns Ltd and Infigen Energy also closed weaker today.
In commodities, gold is trading at $US1,540 an ounce and Light crude is down $0.80 cents at $US99.49 a barrel.
