The Australian share market has closed under the 4000 mark for the first time since mid 2009. After Standard & Poor’s downgraded the US long term credit rating from AAA to AA+ the local bourse opened sharply lower, recovered slightly at noon, but then accelerated losses. All ahead of an expected challenging session on Wall Street, when US markets opens for the first time since the downgrade.
The S&P/ASX200 Index today shed almost 3 per cent, to finish 119 points down at 3,986.
On the futures market the SPI is 97 points down.
Economic news
ANZ Banking Groups's (ASX:ANZ) job advisements series has shown the employment market is losing momentum. Job ads edged down 0.7 per cent in July, the third fall in four months. In the year to July jobs ads were up 8.3 per cent.
Company news
Rio Tinto Limited (ASX:RIO) and Mitsubishi today launched a bid to acquire all the shares in Coal & Allied Industries that they do not already own. The proposed $122 per share offer values the target at $10.6 billion and sent shares in Coal & Allied Industries Limited (ASX:CNA) surging 27.52 per cent to close at $116.04. Shares in Rio Tinto ended the day at $68.63, having fallen 4.68 per cent.
Lend Lease Group (ASX:LLC) has today announced that the New South Wales Government has provided certainty that the construction company’s controversial $6 billion Barangaroo development on Sydney’s waterfront will go ahead. The completion of the government’s review into the project will now enable Barangaroo to proceed on schedule and allow Lend Lease to start construction within weeks. Shares in Lend Lease Group fell 4.42 per cent today, closing at $8.00.
Regional lender Bendigo and Adelaide Bank Limited (ASX:BEN) has reported a 41 per cent increase in net profit for the 12 months to June, but warned, it expects markets to remain volatile.
JB Hi-Fi (ASX:JBH) has blamed challenging conditions in the retail sector for a 7.6 per cent fall in full year net profit, coming in at $118.7 million. The electronics retailer also forecast flat sales in the year ahead.
Argo Investments Limited (ASX:ARG) posted an 11.8 per cent improvement in its full year net profit, coming in at $172.06 million. The investment company’s result was boosted by increased dividend payments and buy-backs.
Telstra Corporation Limited (ASX:TLS) has announced that it will this month start rolling out its fourth generation wireless mobile internet technology to businesses in east coast capital cities.
Best and worst performers
All sectors closed in the red: The sector with the smallest losses was Consumer Staples, losing 139 points to close at 7,011. The worst performing sector was Materials, dropping 434 points to close at 11,695. The best performing stock in the S&P/ASX200 was Whitehaven Coal shares gained 1.53 per cent to close at $5.98. Shares in Sandfire Resources and St Barbara also closed in higher. The worst performing stock was Panoramic Resources, falling 9.7 per cent to close at $1.35. Shares in Karoon Gas Australia and Boart Longyear fell heavily today.
Commodities
Gold is trading at $US1,712 an ounce. Light crude is down $3.52 cents at $US83.36 a barrel.
