A weak US jobs report triggered steep falls on the Australian share market today. Local stocks shed more than 2 per cent. The banks fared the worst, with few pockets of resistance across the board. A number of companies also went ex-dividend today.
The S&P/ASX200 Index tumbled 101 points to close at 4,142. On the futures market, the SPI has sank 93 points.
Economic news
Job advertisements in Australia fell for the second straight month in August. ANZ Banking Group’s (ASX:ANZ) jobs survey revealed total job ads were down 0.6 per cent last month.
Inflation dipped last month for the first time since October 2009. The TD Securities - Melbourne Institute monthly inflation gauge dipped 0.1 percentage point in August.
Company gross operating profits increased more than expected in the June quarter, up 6.7 per cent according to the Australian Bureau of Statistics. The rise points to stronger June quarter GDP figures, due this Wednesday.
Activity in the Australian services sector expanded last month. The Australian Industry Group and Commonwealth Bank of Australia (ASX:CBA) Australian Performance of Services Index increased 3.3 points to 52.1 points in August.
Car sales have increased for the second straight month. The Australian Federal Chamber of Automotive Industries says sales of new vehicles in Australia rose 7.3 per cent from August last year.
Investor confidence is at its lowest point in more than two years. A survey of 820 investors from research firm CoreData has shown investor sentiment dropped 15.7 points to minus 21.7 in the third quarter of this year.
Company news
Global growth concerns sank all the major banks today, all closing more than 2 per cent lower, on the same day reports emerged that Standard and Poor’s is embarking upon a major review of global banks. The AA credit rating assigned to Australia’s banks is understood to be at threat due to their reliance on wholesale funding and increasing asset prices and household debt. Shares in National Australia Bank fared the worst of the big four, falling 3.15 per cent to close at $22.77.
Coal hauler QR National Limited (ASX:QRN) has struck a deal to build the $900 million Wiggins Island Rail Project in Queensland. Construction of the export terminal at the Gladstone liquefied natural gas project is due to start early 2012. Shares in QR National firmed earlier in the day but closed flat at $3.26.
The board of Macarthur Coal Limited (ASX:MCC) have urged shareholders to accept a $4.8 billion takeover bid by Peabody Energy and ArcelorMittal. The offer has been extended until September 27, 2011.
Newcrest Mining Limited (ASX:NCM) today announced the appointment of Gerard Bond as its new finance director, replacing Greg Robinson who stepped into the position of Managing Director and CEO on July 1, 2011.
Shares in Po Valley Energy Limited (ASX:PVE) jumped after the Italy-focused gas producer posted a maiden first half profit of $0.5 million, underpinned by a 68 per cent rise in revenue.
Shares in Sherwin Iron Limited (ASX:SHD) also gained after the iron ore explorer said the resourse at its Roper River Iron Ore Project in the Northern Territory has soared 58 per cent to 168 million tonnes.
Best and worst performers
All sectors closed lower: The sector with the smallest losses was Telco Services, losing 11 points to close at 1,031. The worst performing sector was Energy, dropping 471 points to close at 12,971. The best performing stock in the S&P/ASX200 was Perseus Mining shares gained 3.88 per cent to close at $3.75. Shares in Gryphon Minerals and OceanaGold Corporation also closed higher. The worst performing stock was Seven West Media, falling 10.42 per cent to close at $3.18. Shares in BlueScope Steel and Mirabella Nickel also fell heavily today.
IPOs
Strickland Resources (ASX:STK) listed, opened and closed today for $0.20.
Commodities
Gold is trading at $US1,876 an ounce. Light crude is down $0.88 cents at $US85.57 a barrel.
