The Aussie sharemarket’s down 1.14 per cent today, with the financials leading the losses and all the big banks closing in the red.
The S&P/ASX200 Index closed 48 points lower at 4,184.6. On the futures market, the SPI is down 63 points.
Economic news
Building approvals plunged 13.6 per cent to 11,889 in September, according to Bureau of Statistics figures. It’s compared with a downwardly revised 13,758 units in August.
Company news
Westpac Banking Corporation (ASX:WBC) reported a seven per cent annual rise in cash earnings to $6.3 billion today. The bank’s chief executive Gail Kelly says economic conditions in Europe remained challenging, and associated disruption in financial markets increased uncertainty, but Westpac’s well positioned to respond well. Shares in Westpac Banking Corporation (ASX:WBC) are down 1.91 per cent, closing at $21.52.
Meanwhile the National Australia Bank (ASX:NAB) lowered its standard variable rate by only 20 points, whereas the other big three lowered theirs by the 25 point reduction the RBA announced yesterday. The move’s prompted acting prime minister Wayne Swan to label the bank “greedy”. He says the bank’s decision is "a kick in the guts to working families". But the NAB says the new rate of 7.47 is still the lowest among the major banks.
Shares in National Australia Bank (ASX:NAB) dropped 0.76 per cent to close at $24.91.
The Woolworths Limited (ASX:WOW) chief executive Grant O’Brien told an investor presentation today that the supermarket giant needs to re-establish marketing supremacy around value and growth. It’s set to create 10,000 new jobs this financial year, and will open 39 new supermarkets, seven Big Ws and 15 Masters home improvement stores.
RIO Tinto Limited (ASX:RIO) NYSE:RIO) (LON:RIO) has signed a deal to buy at least 150 driverless trucks from Komatsu Limited (TOY:6301), making it the owner of the world’s largest fleet of the trucks. They’ll be used in Rio’s Pilbara operations.
Mirvac Group (ASX:MGR) has confirmed its earnings forecast and says it’s realised $127 million from its 2012 financial year asset sales program. It’s still forecasting operating earning of 10.5 to 10.6 cents per stapled security.
And Qantas Airways Limited (ASX:QAN) boss Alan Joyce will give evidence at a parliamentary committee scrutinising proposed legislation affecting Qantas operations on Friday, where he’ll be quizzed about what he told the federal government and the opposition before he grounded the airline’s fleet.
Best and worst performers
The best performing sector was utilities, gaining 20 points to close at 4,316.
The worst performing sector was real estate investment trusts, losing 16 points to close at 773.
The best performing stock in the S&P/ASX200 was Gryphon, lifting 7.75 per cent to close at $1.46. Shares in West Areas and Mesoblast also finished the day stronger.
The worst performing stock was Onesteel, down 17.92 per cent closing at 98.5 cents. Bluescope and Dart Energy also closed lower.
Commodities
Gold is trading at $US1,724 an ounce. Light crude is down 64 cents at $US91.55 a barrel.
