The Australian share market has plunged 3 per cent, as fears rise over Europe’s inability to contain its debt crisis. All sectors and most stocks are in the red with the steepest losses among the miners and banks, compounded by two of the majors ANZ Banking Group (ASX:ANZ) and National Australia Bank Limited (ASX:NAB) trading ex-dividend.
The S&P/ASX200 index has tumbled 130 points and is 4,216. On the futures market the SPI is down 106 points.
Economic news
Australia’s jobless rate eased last month. According to the Australian Bureau of Statistics the jobless rate was 5.2 per cent in October, compared with an upwardly revised 5.3 per cent the month before. The ABS also showed employers added 10,100 jobs in October, slightly higher than expected.
Company news
Singapore Telecommunications Limited (ASX:SGT) says its Australian arm Optus has produced a resilient first half result against a backdrop of a competitive market. In the half year Optus lost $1 million from its net profit, dropping to $344 million. Operating revenue however, rose 1.6 per cent to $4.7 billion. Sigtel’s total net profit was down 2.1 per cent while revenue added 5.6 per cent in the six month period. Shares in SingTel have fallen 0.42 per cent, trading at $2.39.
Fairfax Media Limited (ASX:FXJ) says its new financial year has continued to experience soft trading conditions. Speaking at the company’s annual general meeting, CEO Greg Hywood, cautioned that the media company’s advertising revenues are being impacted from weak consumer sentiment. In the first four months of the current financial year, Fairfax says its revenues have dipped 4 per cent from the year before. Shares in Fairfax Media have dropped 3.23 per cent, trading at $0.90.
Best and worst performers
All sectors have retreated: The sector with the smallest losses is Telco Services, easing 12 points to 1,061. Shares in Telecom Corporation of New Zealand have firmed 0.49 per cent and trading at $2.07. Shares in Reverse and Enerji are also higher.
The worst performing sector is Financials Excluding Real Estate Investment Trusts, falling 193 points to 4,585. Shares in Challenger have dropped 6.99 per cent and trading at $4.26. Shares in ANZ Banking Group and the NAB are also lower, with both trading ex-dividend today.
New Zealand
The NZSX50 has lost 40 points: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock rising 0.37 per cent to $2.70 followed by Fletcher Building, Westpac and Transpacific Industries.
Gold and the dollar
Gold is trading at $US1,773 an ounce and the Australian dollar is buying $US1.0132.
