03 Feb 2012 - ASX down before US jobs data. Speculation mounts more job cuts could be imminent after Westpac Banking Corporation
(ASX:WBC) cuts 560 positions.
The Australian share market has ended the day and week down. Having started in positive territory today equities had retreated into the red by noon and extended losses throughout the session to shed 0.4 per cent by close. Traders remained cautious ahead of a key report on US non-farm payrolls this evening and ongoing debt developments in Europe.
FiguresS&P/ASX200 Index lost 17 points to finish at 4,251. For the week the index lost 37 points. On the futures market the SPI is 16 points lower.
Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average lost 29 points lower. The S&P 500 Index added 7 points, the Nasdaq added 54 points, and the 100 Index added 41 points.
Economic newsAustralian services sector activity picked up at the beginning of this year. According to The Australian Industry Group and Commonwealth Bank of Australia
(ASX:CBA), their Australian Performance of Services Index increased 2.9 points to 51.9 points in January. Two rate cuts in November and December last year were attributed for the pick-up that pushed the level of activity above 50, indicating expansion in the sector.
Company newsSpeculation is circling that Westpac Banking Corporation
(ASX:WBC) could cut up to 1,500 jobs after it was yesterday confirmed 560 jobs will go. CEO Gail Kelly today blamed higher funding costs for bank’s move and did not rule out further job losses this year. Mrs Kelly also today refused to commit to passing on a potential rate cut ahead of next week’s interest rate decision from the Reserve Bank of Australia. Shares in Westpac slipped 0.62 per cent today to close at $20.79.
Mining services company Ausdrill Limited
(ASX:ASL) today revealed its founder and managing director, Ron Sayers, is facing legal action. Proceedings have now begun concerning allegations of tax fraud almost 10 years ago from Mr Sayers and others. Audrill’s board says it’s fully supportive of Mr Sayers and is confident of his ability to perform his role as managing director for the company. Shares in Ausdrill fell 1.4 per cent today to close at $3.52.
Shares in Magma Metals Limited
(ASX:MMW) closed almost 69 per cent stronger after its 9 per cent shareholder, nickel producer Panoramic Resources Limited
(ASX:PAN), launched a takeover bid valuing the explorer at about $40 million.
Shares in Decmil Group Limited
(ASX:DCG) finished stronger after the engineering and construction company said it had scored a $90 million contract to build a village for BHP Billiton Limited
(ASX:BHP) in Queensland.
Best and worst performersMost sectors ended in the red: The best performing sector was Industrials adding 5 points to close at 3,570. The worst performing sector was Consumer Staples, retreating 82 points to close at 7,244 points.
The best performing stock in the S&PASX 200, was White Energy Company, rising 10 per cent to close at $0.495. Shares in Beach Energy and Ramelius Resources also finished higher.
The worst performing stock was Lynas Corporation dropping 10.06 per cent to close at $12.43. Shares in Kagara and Energy Resources of Australia also closed lower.
CommoditiesGold is trading at $US1,758 an ounce and gained $17.21 over the week.
Light crude is $0.07 lower at $US96.43 a barrel.
The Australian dollarThe Australian dollar is buying $US1.069 and has gained $0.0058 over the week.
