The Australian sharemarket has fallen for the fourth day, investors in a cautious mood ahead of the G20 summit. Europe’s debt crisis is expected to dominate talks.
The S&P/ASX200 Index closed 13 points lower at 4,172. On the futures market, the SPI is up 13 points.
Economic news
France and Germany have warned Greece it will not get “one more cent” from the EU and IMF unless it abides by the terms of the rescue deal, calling for the referendum, if needed to be carried out swiftly.
Closer to home, the Australian Bureau of Statistics reported retail sales increased 0.4 per cent in September, in line with forecasts.
The Australian Industry Group and Commonwealth Bank’s performance of services index fell 1.5 points to 48.8 in October, falling below the 50 mark that separates growth from contraction.
Company news
Australia and New Zealand Banking Group (ASX:ANZ) posted a full-year cash profit of $5.65 billion. That’s a 12 per cent rise on the year before. The bank says market volatility and consumer caution is hurting profits more than expected and will be a factor for some time. The bank will pay a final dividend of 76 cents, taking the total dividend to 140 cents. ANZ shares are down 1.96 per cent, closing at $20.49.
Fortescue Metals Group Limited (ASX:FMG) chairman Andrew Forrest has attacked the government over the mining tax, saying it discriminates against smaller miners. Mr Forrest says the big three miners – Rio Tinto Limited (ASX:RIO) , BHP Billiton Limited (ASX:BHP) and Xstrata would not pay the tax for the foreseeable future, leaving the smaller miners to pay higher rates of up to 46 per cent. Fortescue shares dropped 2.89 per cent to close at $4.71.
News Corporation (ASX:NWS), (NASDAQ:NWSA) has reported a slight fall in first quarter net profit to $US738 million due to one-off charges.
Westpac Banking Corporation (ASX:WBC) chief Gail Kelly says the Reserve Bank will need to cut interest rates again, and soon, as uncertainty in Europe continues to undermine confidence locally.
Perpetual Limited (ASX:PPT) forecasts a drop of around 30 per cent in first half profit because of falling equity markets.
Boral Limited’s (ASX:BLD) also facing a tough year, the building products division taking a hit with significant exposure to residential housing and continued softness in the sector.
Best and worst performers
The best performing sector was Consumer Discretionary, gaining 13 points to close at 1,247.
The worst performing sector was Financials Excluding Real Estate Investment Trusts, losing 33 points to close at 4,622.
The best performing stock in the S&P/ASX200 was Resolute Mining, lifting 5.97 per cent to close at $1.775. Shares in Aurora Oil & Gas and Fairfax Media also finished the day stronger.
The worst performing stock was Bathurst Resources, down 9.15 per cent closing at $0.695. BlueScope Steel and OM Holdings also closed lower.
Commodities
Gold is trading at $US1,732 an ounce. Light crude is down $1.08 at $US91.43 a barrel.
