After weak offshore leads the Australian share market followed suit, drifting up to half a per cent down to close 0.3 per cent in the red. After announcing a $US12 billion acquisition BHP Billiton Ltd (ASX:BHP) fell, weighing on the miners. Energy stocks slipped after the price of oil eased and the retailers continued to extend yesterday’s losses.
The S&P/ASX200 Index lost 17 points to close at 4,474. For the week, it was down 181 points. On the futures market, the SPI is 26 points lower.
On Wall Street, the DOW Jones Industrial Average was down 220 points over the four trading days this week. The S&P 500 Index was down 44 points, NASDAQ was down 97 and the 100 Index was down 81.
Economic news
Westpac Banking Corporation (ASX:WBC) has become the first of Australia’s banks to forecast that the Reserve Bank of Australia will cut rates instead of hike them over the next year. The bank expects a sequence of rate cuts beginning with 25 basis points by December 2011.
Company news
Gloucester Coal Limited (ASX:GCL) says it has completed two acquisitions that place the company on track to become “a leading Australian coal producer” worth around $2 billion. Gloucester will pay for the Donaldson Coal Holdings acquisition by issuing Hong Kong-based Noble Group $360 million of its shares at $9.75 per share. Gloucester will pay for the Monash Group acquisition by issuing Ellemby Holdings Pty Ltd a small amount of its converting shares and $30 million in cash. Shares in Gloucester Coal ended 0.57 per cent lower at $8.65.
Shares in Fairfax Media Limited (ASX:FXJ) recovered some ground today after having yesterday slumped to a two-year low. The fall came amid rising fears of increasing media regulation, after News Corp’s News of the World scandal sent shock waves through the sector this week. David Jones Ltd (ASX:DJS) surprise profit downgrade yesterday has sparked more concerns that the struggling retail sector will cut into advertising dollars. After yesterday falling more than 4 per cent, shares in Fairfax today firmed 1.1 per cent to close at $0.92.
Shares in News Corporation (ASX:NWS) continued to slide today, despite Rupert Murdoch refuting speculation he plans to offload newspaper assets in an effort to manage the backlash from the phone-hacking crisis.
Shares in Beach Energy Limited (ASX:BPT) and Icon Energy Limited (ASX:ICN) jumped after the companies resolved their dispute, in relation to the prospective ATP 855-P tenement, and agreed to work together under a Farmin Agreement, executed today.
Best and worst performers
The best performing sector was Telco Services, rising 4 points to close at 1,026. The worst performing sector was Consumer Discretionary, dropping 11 points to close at 1,284 points. The best performing stock in the S&P/ASX200 was Beach Energy shares gained 6.38 per cent to close at $1.00. Shares in Australand Property Group and NRW Holdings ended the week higher. The worst performing stock was Gunns, shedding 5.66 per cent to close at $0.25. Shares in Infigen Energy and Virgin Blue Holdings also closed lower today.
Commodities
Gold is trading at $US1,583 an ounce, and is up almost $41.00 on the week. Light crude is up 24 cents at $US95.93 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0699 cents, and is down half a cent on the week.
