The Australian share market finished the day and week 3.5 per cent lower, after a dip on Wall Street overnight amid growing fears of a recession in the US and Europe.
The S&P/ASX200 Index dropped 149 points to close at 4,102 while for the week it was 71 points lower. On the futures market, the SPI is 151 points lower.
US
Over the four trading days on Wall Street this week, the Dow Jones Industrial Average was down 278 points, the S&P 500 Index was down 38 points, the NASDAQ was down 128 and the 100 Index was down 109.
Company news
Billabong International Limited (ASX:BBG) shares slumped 25 per cent at today’s open after it posted an 18 per cent drop in annual net profit to $119 million. The surfwear retailer said its annual profit result was hurt by the strong Australian dollar and weak consumer sentiment. Global sales however, were up by 23.8 per cent for the financial year to June 30. Billabong declared a final dividend of 13 cents per share franked to 25 per cent.
Shares in Billabong International Limited (ASX:BBG) finished the week 26.11 per cent lower at $3.82.
QBE Insurance Group Limited (ASX:QBE) posted net profit of US$673 million today, an increase of 53 per cent compared with the previous six months. Despite the rise however, the group cut its full year insurance profit margin outlook. It is now targeting a margin of 11 to 14 per cent.
The insurer saw catastrophes batter key markets in New Zealand, Australia, the US and Japan in the first half. QBE maintained the interim dividend of 62 cents per share, franked at 10 per cent. Shares in QBE Insurance Group Limited (ASX:QBE) dropped 5.6 per cent today, closing at $12.98.
Australia and New Zealand Banking Group (ASX:ANZ) reported underlying profit after tax for the nine months to June 30 of $4.2 billion, 16 per cent higher than the corresponding period. The result was helped by a 10 per cent fall in the provision charge for bad debts.
Fortescue Metals Group (ASX:FMG) reported a full year net profit of $US1.02 billion, almost doubling the figure from the year before. The miner paid a maiden dividend of three cents in March, and will pay a fully franked dividend of four cents per share next month. Chief executive Nev Power said the result was a combination of strong operating performances and growth overlaid by the start of dividend payments.
Sectors and stocks
All sectors were in the red at close but the best performer was, Telco Services, losing 18 points to close at 1,053. The sector with the greatest losses was energy, losing 630 points to close at 12,891 points.
The best performing stock in the S&P/ASX200 was Telecom NZ, gaining 4.37 per cent to close at $2.15. Shares in Newcrest and AlacerGold also ended the week stronger.
The worst performing stock was Billabong, falling 26.11 per cent to close at $3.82. Shares in Goodman Fielder and Tabcorp also closed lower today.
IPOs
Bega Cheese Limited (ASX:BGA) started trading today at $1.90, 10 cents below its issue price of $2 and it closed at $1.83.
Commodities and the dollar
Gold is trading at $US1,846 an ounce and is up $100 on the week. Light crude is down $1.87 at $US80.51 a barrel.
The Australian dollar is buying $US1.0354 cents, which is the same price it closed at this time last week.
