Market Wrap: Aus shares slide lower

Market Reports

The Australian stock market has closed below the 4300 mark slumping 1.3 per cent. All sectors finished in the red as US recession fears continue to grip market sentiment.

The S&P/ASX200 Index closed 56 points lower at 4,277. On the futures market, the SPI is 44 points weaker.

Economic news

The Productivity Commission has backed calls by retailers to lower the $1000 goods and services tax free threshold for imported goods.

Company news

Rio Tinto Limited (ASX:RIO) has announced record first half earnings, with underlying earnings of $US7.8 billion thanks to record iron ore prices and a strong Australian dollar. The market had expected a result of $US8 billion. The result is 35 per cent above 2010’s first half. Rio Tinto shares lost 1.31 per cent to close at $76.58. 

Leighton Holdings Limited (ASX:LEI) has narrowed its full year loss. The construction group now expects to post an after tax loss of around $408 million. That’s $19 million less than guidance given in April. The loss is due to massive write-downs on its two key projects, the Brisbane Airport Link and Victorian desalination plant. Leighton Holdings shares dropped 0.35 per cent to close at $20.00. 

Transurban Group (ASX:TCL) has reported strong profits for 2011. Pre-tax profits more than trebled to almost $109 million. The lift due to stronger tollroad traffic, higher toll fares and cost cutting.

After a long search, Toll Holdings Limited (ASX:TOL) has appointed Brian Kruger, its chief financial officer as its next chief executive.

Newcrest Mining Limited (ASX:NCM) has confirmed a helicopter carrying eight employees and two contractors has crashed in Indonesia. Two Australians were onboard.

Energy Resources of Australia Limited (ASX:ERA) has posted a first half loss of just under $122 million, compared with a profit of $23 million a year earlier.

Sectors and stocks

The sector with the smallest losses was Consumer Discretionary with the index dropping 5 points to close at 1,246. The worst performing sector was Energy, falling 310 points to close at 13,826.

The best performing stock in the S&P/ASX200 was Bathurst Resources Limited, shares rising 2.38 per cent to close at $1.075. Shares in Monadelphous Group Limited and Brambles Limited also closed in positive territory today.

The worst performing stock was Bow Energy Limited shedding 10.17 per cent to close at $1.06. Shares in Energy Resources of Australia Limited and Gunns Limited also closed weaker today.

IPOs

The biggest float of the year, Kentucky Fried Chicken franchisee, Collins Foods Limited (ASX:CKF) started trading today at $2.48, $0.02 below its issue price and closed at $2.30.

Commodities

Gold is trading at $US1,662 an ounce and Light crude is 21 cents weaker at $US91.72 a barrel.

 

 


 


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