The Australian share market has closed 1.7 per cent weaker, pulled down by weak earnings and talk of another delay in securing a bailout for Greece weighing on investor sentiment.
Today, the S&P/ASX 200 index slid 71 points lower to finish at 4,182. On the futures market, the SPI is currently 79 points weaker.
Economic news
The unemployment rate has dropped to its lowest level in half a year, to 5.1 per cent, beating expectations of a rise to 5.3 per cent. 12,300 full-time and 34,000 part-time positions were created in January.
Company news
Qantas Airways Limited (ASX:QAN) has confirmed it will cut 500 jobs because of operational changes. Chief executive Alan Joyce says there’s no plans to move jobs offshore, but has indicated maintenance and catering operations will be consolidated. The airline reported a net profit of $42 million for the six months to December. That’s an 83 per cent fall on the previous corresponding period. Underlying profit before tax is $202 million for the same period, less than half the previous year’s $417 million, but above company guidance of up to $190 million and the average of analyst’s estimates. The airline has declined to pay an interim dividend. Qantas says it’s a difficult operating environment given the European debt crisis and weaker global growth forecasts. Qantas shares rose 6.09 per cent today, closing at $1.655.
Westpac Banking Corporation (ASX:WBC) has reported a 3 per cent fall in first quarter cash earnings to $1.5 billion, below market expectations. Chief executive Gail Kelly says the result reflects the more challenging operating environment. Net profit for the three months to December was approximately $1.4 billion. The bank increased lending by 1 per cent in the period compared to the previous three months. Westpac shares closed 3.53 per cent lower at $20.22.
Wesfarmers Limited (ASX:WES) posts a net profit of $1.176 billion for the half year ended December 31, in line with the profit reported in the previous corresponding period.
Caltex Australia Limited (ASX:CTX) slashes $1.5 billion off the value of its two refineries and warns they may close.
AMP Limited (ASX:AMP) reports a net profit of $668 million for the year to December, an 11 per cent fall on the previous corresponding period.
And Billabong International Limited (ASX:BBG) requests a trading halt pending an announcement on the strategic capital structure review announced late last year.
Best and worst performers
All sectors have finished in the red. The sector with the smallest losses was Real Estate Investment Trusts falling 3 points to close at 815. The worst performing sector was Materials, falling 249 points to close at 11,177 points.
The best performing stock in the S&PASX 200, was Qantas Airways Limited (ASX:QAN), rising 6.09 per cent to close at $1.655. Shares in GrainCorp Limited (ASX:GNC) and Mesoblast Limited (ASX:MSB) also added value.
The worst performing stock was Gindalbie Metals Limited (ASX:GBG), dropping 7.41 per cent to close at $0.625. Shares in Kagara Limited (ASX:KZL) and Goodman Fielder Limited (ASX:GFF) also closed lower.
Commodities
Gold is trading at $US1,722 an ounce. Light crude is $0.31 lower at $US101.49 a barrel.
