The Aussie sharemarket closed almost two and a half per cent lower, retail stocks dragging it down with thanks to Billabong’s tumble.
The S&P/ASX 200 Index lost 99 points to finish at 4,060. On the futures market, the SPI is down 79 points.
Economic news
Merchandise imports rose by $56 million, or 2.67 per cent in November, to $20.813 billion, seasonally adjusted, the Bureau of Statistics says.
Unadjusted, merchandise imports increased by three per cent, or $720 million, in November.
Company news
Billabong International Limited (ASX:BBG) shares have almost halved today, slumping more than 44 per cent at close after the clothing manufacturer and retailer downgraded its sales and profit outlook and announced a review of its operations. It says while results remain heavily dependent on its performance during the critical December trading period, it’s now expecting to report earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to December 31 of between $70 million to $75 million, compared with $94.6 million in the previous corresponding period. Shares in Billabong International Limited (ASX:BBG) closed 44.23 per cent lower, at $2.03.
QR National Limited (ASX:QRN) and its partners have delivered a $1.1 billion, 20-month project under budget and ahead of schedule. The 69 kilometre rail link’s set to unlock a further 50 million tonnes of coal to be exported a year. Meanwhile QR’s facing heat from the Rail Tram and Bus Union for banning the use of mobile phones by staff during working hours. The company says staff using phones on the job increases the risk of human error and jeopardises safety. Shares in QR National Limited (ASX:QRN) closed 3.38 per cent lower today $3.43.
Dulux Group’s (ASX:DLX) managing director Patrick Houlihan told today’s AGM a resilient home renovation market and improved performances from its trade businesses will drive net profit higher next year. He says there are opportunities to outperform in modestly growing Australian markets.
Woodside Petroleum Limited (ASX:WPL) is applying to delay a decision on its controversial and expensive liquefied natural gas project in WA's Browse Basin by more than six months. It says it wants to better evaluate the outcomes of front-end engineering and design work, as well as the results of the tender processes for the development’s major contracts.
Orica Limited (ASX:ORI) is planning to construct a $1 billion ammonium nitrate plant in the Pilbara region in Western Australia, after agreeing to a deal with US group Apache Corp. Fairfax says the deal’s conditional on Norwegian chemicals group Yara International declining to exercise its rights to acquire ANZ’s stake in the collapsed Burrup Fertilisers.
And Qantas Airways Limited’s (ASX:QAN) deal with the Australian Licenced Aircraft Engineers Association (ALAEA) has been welcomed by politicians from both sides, saying it’s good news for the travelling public. The four-year deal has secured a three per cent annual pay rise and protected existing work functions.
Sectors and stocks
Telcos was the best performing sector, down 14 points to 1,102. The worst performing sector was consumer discretionary, dropping 49 points, closing at 1,183.
The best performing stock in the S&P/ASX200 was Goodman, it rose 2.68 per cent to 57.5 cents. Shares in Monadelphous and Murchison also finished stronger today.
The worst performing stock was Billabong as we saw earlier, followed by Onesteel and David Jones.
IPOs
Making its debut on the market today was Kina Petroleum (ASX:KPL), listing, opening and closing at 20 cents.
Commodities
The price of gold is $US1,588 an ounce and Light crude is down 81 cents at $US92.72 a barrel.
