The Australian share market today dropped at the open and extended losses ending 1.8 per cent down and erasing this week’s gains to close lower for the week. Investors remained wary over the outcome of the EU Summit, with unconfirmed reports ranging from debt deals to political deadlocks between the leaders of 27 EU member states. The miners accelerated falls after data from China showed the nation’s inflation dropped sharply last month. All sectors finished in negative territory.
The S&P/ASX200 Index shed 78 points to finish at 4,203. For the week the index fell 85 points. On the futures market the SPI is now down 95 points.
Wall Street, over its four trading days this week: The Dow Jones Industrial Average dropped 22 points. The S&P 500 Index dropped 10 points. The Nasdaq dropped 31 points. The 100 Index dropped 19 points.
Economic news
China’s inflation fell more than expected last month. Data from The National Bureau of Statistics has shown the nation’s annual inflation rate dropped to 4.2 per cent in November. It was the lowest level since September last year and follows an annual pace of 5.5 per cent in October. The latest read was the fourth straight month of easing inflation and reflects the Chinese government’s success is tackling inflation.
Company news
Shares in uranium developer Extract Resources Limited (ASX:EXT) advanced to the top 200’s best performer after its largest shareholder, Kalahari Minerals (LON:KAH) backed a $2.2 billion takeover bid from a state-owned Chinese power company. If the bid for Kalahari is successful it would trigger a bid for Extract, who says it is now considering its options before making any recommendations to shareholders. Shares in Extract Resources advanced 4.7 per cent, closing at $8.47.
AMP Limited (ASX:AMP) has announced Mitsubishi UFJ Financial Group has bought a 15 per cent interest in AMP’s wholly owned subsidiary, AMP Capital, for $425 million. AMP Capital’s managing director says the move gives the company an opportunity to break into Japan. Shares in AMP lost 0.46 per cent today, closing at $4.30.
All the major banks lost value today, led by National Australia Bank Limited (ASX:NAB), just one day after The Big Four, including ANZ Banking Group (ASX:ANZ), Commonwealth Bank of Australia (ASX:CBA) and Westpac Banking Corporation (ASX:WBC) passed on the Reserve Bank of Australia’s 25 basis point rate cut in full to their customers.
The major miners also took a tumble today, led by Rio Tinto Limited (ASX:RIO). Rio’s chief, Tom Albanese, warned at the beginning of the week global market volatility looks like it’s here to stay and to expect more gyrations for the price of metals in 2012.
Best and worst performers
All sectors dropped: The smallest losses was Consumer Stapes losing 66 points to close at 7,624. The worst performing sector was Real Estate Investment Trusts, retreating 22 points to close at 806 points.
The best performing stock in the S&PASX 200, was Extract Resources, shares rising 4.7 per cent to close at $8.47. Shares in BlueScope Steel and Austar United Communications also finished higher.
The worst performing stock was OM Holdings, falling 5.75 per cent to close at $0.41. Shares in Mirabela Nickel and Platinum Asset Management also closed lower.
Commodities
Gold is trading at $US1,711 an ounce and fell by $33 over the week.
Light crude is $0.39 lower at $US97.95 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0117 cents and has lost $0.0096 over the week.
