The Australian sharemarket has fallen 1.2 per cent, as downgrades to European banks and fears France may also be downgraded pushed markets lower.
The S&P/ASX 200 Index ended 51 points lower at 4,140. On the futures market, the SPI is currently down 49 points.
Economic news
Manufacturing activity has contracted for a third consecutive quarter. The Australian Chamber of Commerce and Industry-Westpac industrial trends survey remained steady at 48 points in the December quarter, below the 50 mark indicating expansion.
Sales of new motor vehicles in Australia fell 0.7 per cent, seasonally adjusted in the month of November.
And economic news out of China, manufacturing activity there rose to 49 in December, although remains below the 50 mark separating growth from contraction.
Company news
Telstra Corporation Limited (ASX:TLS) has secured two additional Asian operating licences. That’s according to the Australian Associated Press. The licences have been awarded in Singapore and Japan. The move is part of Telstra’s expansion into Asia, with plans to sell services direct to locals. Telstra has also recently been awarded licences in India. Telstra shares closed 0.31 per cent lower today at $3.26.
National Australia Bank Limited (ASX:NAB) expects next year to be challenging, with subdued consumer and business sentiment and volatile markets. Speaking at the bank’s annual general meeting, chief Cameron Clyne says the bank has reduced its exposure to European sovereigns and entities. Chairman Michael Chaney warned the cost of funding has been pushed up. NAB shares closed 1.59 per cent weaker today at $23.48.
Australia and New Zealand Banking Group (ASX:ANZ) has disabled parts of its online services after a security flaw exposed customers’ personal banking details. That’s according to Fairfax Media.
BlueScope Steel Limited (ASX:BSL) says only 310 million of the 649 million shares it offered to retail investors to raise $600 million were taken up.
Newcrest Mining Limited (ASX:NCM) has suspended operations at its Hidden Valley mine in Papua New Guinea, following a 7.1 magnitude earthquake.
Hastings Diversified Utilities Fund (ASX:HDF) has advised shareholders to reject APA Group’s (ASX:APA) takeover bid.
Best and worst performers
Real Estate Investment Trusts was the best performer, up 1 point to 808. The worst performing sector was Materials, falling 252 points, closing at 10,767.
The best performing stock in the S&P/ASX200 was SMS Management & Technology, it rose 6.97 per cent to close at $4.76. Shares in White Energy Company and Wotif also finished stronger today.
The worst performing stock was Gunns, it dropped 13.79 per cent to $0.125, followed by Lynas Corporation and Mirabela Nickel.
IPO
Kumarina Resources Limited (ASX:KMR) listed on the market today, with an issue, opening and closing price of $0.25.
Commodities
The price of gold is $US1,574 an ounce and Light crude is up 57 cents at $US95.52 a barrel.
