Market Wrap: Aus shares widen weekly fall

Market Reports

The Australian share market today widened this week’s falls. Negative offshore leads pushed equities lower at the open, dropping almost 2 per cent by the session’s end. The miners were weighed down by weak commodity prices with the sector the worst performer. The banks retreated as the threat of European debt contagion increased. The Australia dollar dropped below parity.

Figures

The S&P/ASX 200 Index dropped 81 points to finish at 4,177. For the week the index shed 120 points. On the futures market the SPI is 78 points lower.

Wall Street, over the four trading days this week: The Dow Jones Industrial Average was 383 points lower. The S&P 500 Index was 48 points lower, Nasdaq was 91 points lower, and the 100 Index was 84 points lower. 

Company news

Telstra Corporation Limited (ASX:TLS) has confirmed its annual revenue guidance of low single digit percentage growth and flagged plans for a new division called Telstra Digital Media. Australia’s largest telecommunications company expects growth in mobile and broadband customer numbers will offset a higher than expected fall in revenue from its Sensis business. Telstra has also advised it’s confident of reaching a deal with Australia’s competition regulator for its participation in the National Broadband Network before the end of this year. Shares in Telstra slipped 1.57 per cent today, ending the week at $3.14.

Orica Limited (ASX:ORI) has revealed that the forced shut down of its Newcastle plant is costing the explosives maker $4 million in earnings every week. Orica says it has activated temporary supply chain plans to limit disruption to customers as a result of the plant closure. An independent report investigating the cause of the chemical leaks is expected soon. Shares in Orica finished the week at $25.01 after today falling 0.71 per cent.

iiNet Limited (ASX:IIN) extended its trading halt today, amid reports the internet services provider is planning to announce its purchase of rival Canberra-based telecommunications provider TransACT. The deal is rumoured to be worth between $40 million and $60 million.

Shares in Centro Retail Group (ASX:CER) and Centro Properties Group (ASX:CNP) were placed into a trading halt today. The proposed merger between the two companies, to create a new $4 billion entity called Centro Retail Australia, will be put to a shareholder vote next Tuesday.  

Best and worst performers

All sectors fell sharply: The sector with the smallest losses was Consumer Staples, easing 59 points to close at 7,612. The worst performing sector was Materials, dropping 283 points to close at 11,332 points.

The best performing stock in the S&P/ASX 200, and one of the few top 200 stocks to add value, was Beach Energy, shares rose 2.65 per cent to close at $1.355. Shares in Energy World Corporation and Spotless Group also finished the week higher.

The worst performing stock was Gindalbie Metals, shedding 10.26 per cent to close at $0.525. Shares in OM Holdings and Mt Gibson Iron also closed lower.

Commodities

Gold is trading at $US1,719 an ounce and fell by $69 over the week.
Light crude is $0.19 down at $US98.63 a barrel.

Australian dollar

The Australian dollar is buying 99.94 US cents and has lost $0.0281 cents over the week. 


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