Weighed down by weak leads the Australian share market fell sharply at open, extending losses throughout the day to end 1.5 per cent down. All sectors sank as investors braced for an expected weak report on US employment, due out later today.
The S&P/ASX200 Index slid 65 points to close at 4,243. For the week the index managed to close 43 points higher. On the futures market, the SPI is down 68 points.
On Wall Street, over the four trading days this week: The DOW Jones Industrial Average was 209 points higher. The S&P 500 Index was up 28 points. The NASDAQ was up 66. The 100 Index was up 57.
Company news
WikiLeaks cables have revealed that outgoing Commonwealth Bank of Australia (ASX:CBA) chief Ralph Norris was concerned Australia’s AAA credit rating was at risk during the global financial crisis. According to Fairfax previously secret US government cables have stated Mr Norris ''expressed concern'' that a rating cut would ''ripple through the real economy'', impacting Australia’s reliance on overseas funding. Shares in CBA fell 1.16 per cent today, closing at $47.52.
Cape Lambert Resources Limited (ASX:CFE) expects its Marampa iron ore asset in Sierra Leone to list on London’s Alternative Investment Market by the end of November. Chairman Tony Sage has told media that the prospectus for the raising will be available by the end of September and the Marampa company will be valued at around $500 million. Shares in Cape Lambert Resources dropped 2.06 per cent today, finishing at $0.475.
Shares in Incitec Pivot Limited (ASX:IPL) slipped after the company dismissed speculation that it will demerge its fertiliser arm to prevent it weighing on its share price. Responding to claims from UBS, that a demerger could drive $9 billion in takeover activity, Incitec CEO James Fazzino has told the media that the company is "very comfortable" with its composition.
Amid broad based losses shares in Qantas Airways Limited (ASX:QAN) bucked the trend after reporting a 6.2 per cent increase in July passenger numbers. The rise was boosted by Jetstar’s expansion and the grounding of rival Tiger Airways.
Best and worst performers
All sectors finished in the red: The sector was the smallest losses was Telco Services, easing 8 points to close at 1,042. The worst performing sector was Utilities, dropping 106 points to close at 4,405 points.
Only nine companies in the S&P/ASX200 closed higher today: The best performing stock was Infigen Energy shares advancing 6.12 per cent to close at $0.26. Shares in The Reject Shop and Qantas also gained. The worst performing stock was Intrepid Mines, shedding 6.86 per cent to close at $1.425. Shares in IOOF Holdings and White Energy Company also finished sharply lower today.
IPOs
Commissioners Gold Limited (ASX:CGU) listed today for $0.20 and opened at a $0.01 premium. The gold explorer closed the day at $0.21.
Commodities
Gold is trading at $US1,830 an ounce and is up by $2.26 on the week. Light crude is down $0.25 cents to $US88.68 a barrel.
The Australian dollar
The Australian dollar is buying $US1.071 cents, and is up by just over one cent on the week.
