Market Wrap: Aus shares close below 4000

Market Reports

The Australian share market has fallen more than 2.5 per cent today, with a barrage of bad economic news taking its toll. The market ended the day below the 4000 mark.

The S&P/ASX200 Index closed 107 points lower at 3,965. On the futures market, the SPI is down 120 points.

Economic news

The Westpac-Australian Chamber of Commerce and Industry survey of industrial trends index fell more than a point in the September quarter to 47.7.

The US Federal Reserve is launching a $US400 billion program to twist its balance sheet toward longer-term securities to stimulate the economy.

HSBC’s China Flash PMI shows the country’s factory sector contracted for a third consecutive month in September, dipping to 49.4 in September from August’s 49.9.

Company news

Approval for the takeover of Foster's Group Limited (ASX:FGL) by SABMiller will be decided on the grounds of national interest, according to a spokesperson for the Treasurer, as reported by the Australian Financial Review. The Foster’s board has endorsed the revised bid that values the Australian brewer at more than $12 billion. Moody’s has put Foster’s ratings on review for a possible upgrade in response to the news. Foster’s shares jumped 7.57 per cent, to close at $5.26.

Lynas Corporation Limited (ASX:LYC) shares continued to tumble today, with the company flagging a 30 per cent jump in full year pre-tax loss because of higher operating costs. The company revealing the forecast in response to a query by the ASX noting an unexplained slump in the share price and an increase in trading volumes. Lynas said it was not aware of any information that had not been announced that could explain the recent trading. Lynas shares plummeted 13.67 per cent, to close at $1.105.

OrotonGroup Limited (ASX:ORL) reports almost a $25 million profit for the year to July 30, up from $23 million, exceeding expectations as it commits to opening more stores in Asia and Australia.

Brickworks Limited's (ASX:BKW) annual profit edges up three percent, but says there’s little chance of a recovery for the housing market in the short term.

Washington H. Soul Pattinson and Co. Limited’s (ASX:SOL) full year profit increases 67 per cent thanks to an asset sale.

And Shell senior executive Ann Pickard is joining the board of Westpac Banking Corporation (ASX:WBC).

Best and worst performers

The best performing sector was Telco Services, ending the day flat to close at 1,056. The worst performing sector was Materials falling 514 points to close at 11,247. The best performing stock in the S&P/ASX200 was Foster’s, as mentioned earlier. Shares in Treasury Wine Estates and ResMed also finished the day stronger. The worst performing stock was Kagara, it lost 18 per cent to close at $0.41. Lynas and Murchison Metals also closed lower.

IPOs

Coal explorer Baru Resources Limited (ASX:BAC) opened at $0.19, 1 cent below its IPO price and closed at $0.19.

Commodities

Gold is trading at $US1,773 an ounce. Light Crude is down $1.38 to $84.54 a barrel.

 


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