The Australian sharemarket has ended the day 1.1 per cent lower, unwinding some of its new year gains as nervousness about the state of Europe’s economy resurface.
The S&P/ASX 200 Index fell 45 points to finish at 4,143. On the futures market, the SPI is 26 points lower.
Economic news
Australia's trade surplus narrowed in November to $1.38 billion.
The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (PSI) rose 1.3 points in December, remaining in negative territory at 49.0 points.
And more than 1 million vehicles were sold last year. For the first time in decades a small car, the Mazda3 was the nation’s best selling car.
Company news
Transpacific Industries Group Limited (ASX:TPI) says founder and former executive chairman Terry Peabody has launched legal action against the company claiming damages of $4.6 million plus interest and costs. The Australian Financial Review reports that private equity firm KKR offered 66 cents a share at a capital raising, but was turned away by Transpacific. The shares were sold for 62 cents, and Mr Peabody says that decision cost him millions of dollars. According to the Dow Jones Newswires, Transpacific’s head of investor relations says KKR’s bid was received almost an hour after the book had closed. He compares the situation to someone trying to bid at a house auction after it’s finished. In a statement to the market, the waste services company denies any liability and intends to defend the proceedings. Transpacific shares closed 0.63 per cent higher at $0.805.
National Australia Bank Limited (ASX:NAB) is set to sell its debut euro-denominated, five year, covered bond, that’s according to one of the banks running the deal speaking with Deal Journal Australia. Deutsche Bank, JPMorgan Chase & Co, NAB Wholesale Bank and Credit Suisse are the book runners on the sale, that’s according to the Wall Street Journal. Initial price guidance for the benchmark bond has reportedly been set in the area of 100 basis points over mid swaps. NAB shares closed 1.94 per cent lower at $23.73.
Commonwealth Bank of Australia (ASX:CBA) has priced its €1.5 billion, five year covered bond at 100 basis points over mid swaps reports the Dow Jones Newswires.
ANZ Banking Group’s (ASX:ANZ) E*Trade was forced to shut down over the holidays due to a malicious cyber attack.
Lynas Corporation Limited (ASX:LYC) says it has completed all requirements for the application to the Malaysian Atomic Energy Licensing Board for a temporary licence for its Malaysian plant.
A clash between hybrid and equity holders has cast doubt over a takeover bid for PaperlinX Limited (ASX:PPX) by a private equity consortium, that’s according to The Australian Financial Review.
Best and worst performers
The best performing sector was Real Estate Investment Trusts, closing flat at 811. The worst performing sector was Energy, falling 228 points to close at 12,878.
The best performing stock in the S&P/ASX200 was Kagara rising 7.02 per cent to close at 30.5 cents. Shares in Saracen and Charter Hall Group also finished stronger today.
The worst performing stock was BlueScope Steel, it closed 4.71 per cent lower at 40.5 cents, followed by Goodman Fielder and Lynas Corporation.
Commodities
The price of gold is $US1,617 an ounce and Light crude is down $0.13 at $US103.09 a barrel.
