The Australian share market plunged 3.7 per cent today, or around $50 billion. As the risk of a debt default in Greece escalated so did fears that the Eurozone’s debt woes will stunt global growth. The local banks bore the brunt of the sell-off. All sectors finished steeply lower, with few stocks managing to avoid the sea of red.
The S&P/ASX200 Index plunged 156 points to close at 4,039. On the futures market, the SPI is down 156 points.
Economic news
Australia’s trade surplus widened more than expected in July. The Australian Bureau of Statistics has shown the balance on goods and services was a surplus of $1.826 billion in July. In the same month, the ABS also reported that personal finance commitments rose 0.5 per cent to $7.009 billion.
Company news
Shares in Cochlear Limited (ASX:COH) sunk to the worst performer of the day after announcing it will voluntarily recall one if its failed implants. The hearing implant manufacturer did not estimate how much the recall would cost. Shares in Cochlear sunk 20.34 per cent, closing at $57.50.
Shares in Hunnu Coal Limited (ASX:HUN) soared to the best performer in the day after the Mongolian-focussed coal explorer said it was backing a $443 million takeover bid from Thailand’s largest coal company, Banpu Public Company Limited (SET:BANPU). Banpu is offering $1.80 per share to acquire the 88 per cent of Hunnu Coal that it does not already own. Shares in Hunnu Coal soared 24.55 per cent, closing at $1.725.
Linc Energy Limited (ASX:LNC) is planning to buy back 5 per cent of its shares. The energy company says it will launch the off-market buy-back to take advantage of its current share price, that has been lagging since last year.
Uranium producer Paladin Energy Limited (ASX:PDN) has drawn down around $US127.2 million of funds from its Langer Heinrich project financing facility. The remaining $US7.8 million of the facility will be used for construction costs at the Langer Heinrich mine in Namibia.
Empire Oil & Gas NL (ASX:EGO) has advised that its negotiations with Alcoa (ASX:AAI), to finalise a Gas Sales Agreement, are at an advanced stage. More information on the deal is expected later this week.
Eden Energy Limited (ASX:EDE) is planning to list its UK coal seam methane and shale gas subsidiary, Eden Energy (UK) Ltd, into a new proposed ASX listing called Adamo Energy Ltd. The new float will involve a capital raising of at least $10 million.
Best and worst performers
All sectors fell heavily: The sector with the smallest losses was Telco Services, falling 21 points to close at 1,022. The worst performing sector was Health Care, dropping 391 points to close at 7,205. The best performing stock in the S&P/ASX200, and one of the 6 to close on positive ground was Graincorp shares firmed 0.78 per cent to close at $7.76. Shares in St Barbara and OceanaGold Corporation also closed higher. The worst performing stock was Cochlear, shedding 20.34 per cent to close at $57.50. Shares in Kagara and Linc Energy also fell heavily today.
Commodities
Gold is trading at $US1,850 an ounce. Light crude is down $1.55 cents at $US85.69 a barrel.
