The Australian share market closed more than two per cent lower today, driven by concerns about Europe ahead of next week’s EU summit and in reaction to worse than expected Chinese economic data.
The S&P/ASX200 Index closed 89 points lower at 4,187. On the futures market, the SPI is down 98 points.
Economic news
China’s gross domestic product expanded 9.1 per cent in the third quarter from a year earlier, the slowest pace in more than two years for the world’s second largest economy, which expanded 9.5 per cent in the second quarter.
Meanwhile back on home turf, the minutes of the Reserve Bank of Australia's (RBA) board meeting on October 4 show it was holding out on cutting the cash rate from its current level of 4.75 per cent. But it said it might be prepared to cut the cash rate if inflation looks as if it is under control.
Company news
About 99 per cent of Telstra Corporation Limited (ASX:TLS) investors backed the National Broadband Network deal today at its annual general meeting.
Chief executive David Thodey told shareholders the deal will protect them under current policy, and if there is to be any future change in government policy.
Telstra is now set to progressively decommission its copper-based network so it can allow NBN Co to access its pits, manholes and exchanges.
Shares in Telstra Corporation Limited (ASX:TLS) rose 0.64 per cent today, closing at $3.13.
Seven West Media Limited (ASX:SWM) has finalised a new $1.95 billion credit facility to reduce debt.
The media group says it’s entered into definitive documentation with 12 domestic and international lenders, including Australia’s big four.
The new credit facility’s got three, four and five year tranches totalling $1.95 billion, as well as $125 million in a revolving working capital facility to be accessed for general corporate purposes, Seven West said.
Seven West shares rose 1.95 per cent to $3.14 at the end of the trading day.
Cochlear Limited (ASX:COH) says it’s going to cost between $130 and $140 million to recall its potentially faulty bionic ear implant, Nucleus CI500. It is a voluntary recall, that was announced last month after an increase in reported faults.
BHP Billiton Limited’s (ASX:BHP) Olympic Dam mine expansion approvals might be temporarily halted. Seven minor parties in the South Australian government are seeking to slow the process because they want the company to face a parliamentary enquiry.
Qantas Airways Limited (ASX:QAN) announced this afternoon that its been forced to ground another two aircraft because of ongoing industrial action, which means 80 domestic flights will be cancelled this month. Chief executive Alan Joyce says the airlines lacking manpower.
And Woolworths Limited (ASX:WOW) today confirmed it’s going to raise $500 million in unsecured, subordinated notes after media reports yesterday speculated it was considering a capital raising. It says it will spend the funds on general corporate purposes.
Best and worst performers
The best performing sector was Telcos, up 6 points to close at 1,071. The worst performing sector was materials, losing 414 points to close at 11,414.
The best performing stock in the S&P/ASX200 was Gunns, lifting 12.5 per cent to close at 27 cents. Shares in SMS Management and Technology and Seven West Industries also finished the day stronger.
The worst performing stock was Fortescue, down 9.2 per cent closing at $4.64. Mount Gibson and Iluka also closed lower.
Commodities
Gold is trading at $US1,671 an ounce. Light crude is down 13 cents at $US86.25 a barrel.
