The Australian share market retreated at open and lost 1.5 per cent by midday and continued to trade in the red before closing 2.2 per cent down, the biggest drop since December last year.
Today, the S&P/ASX 200 index dropped 95 points to finish at 4,301. On the futures market, the SPI is currently 102 points lower.
Economic news
The Australian Bureau of Statistics (ABS) has reported building approvals rose more than expected in March. Building approvals jumped 7.4 per cent to 11,501 for the month, compared to 10,710 in February.
The ABS also reported higher than expected retail figures for March. Retail sales rose 0.9 per cent. Retail trade rose to $21.23 billion for the month.
Company news
Commonwealth Bank of Australia (ASX:CBA) will be cutting 100 jobs in Melbourne as it re-structures its softening mortgage business. CBA says it will shut down its mortgage services processing site in Melbourne by the end of this year, moving some of the services interstate. While the majority of staff will be reallocated to other areas, the changes will result in about 100 job losses. Shares in CBA closed 1.06 per cent down at $52.06.
Perpetual Limited (ASX:PPT) is reportedly looking to increase its stake in gaming company Echo Entertainment Group Limited (ASX:EGP). According to The Australian, fund manager Perpetual lodged applications with the New South Wales and Queensland governments to increase its stake to above 10 per cent. Perpetual is an 8 per cent shareholder in Echo and holds 10 per cent of Crown. Shares in Perpetual closed 4.92 per cent down at $23.40.
Whitehaven Coal (ASX:WHC) has made a $172 million bid for coal explorer Coalworks Limited (ASX:CWK). Whitehaven currently has a 17.3 per cent interest in Coalworks.
Construction company Leighton Holdings Limited (ASX:LEI) has advised the completion date for Brisbane’s Airport Link toll road will be delayed by almost two months however Leighton says the delays will not impact its profit guidance for this year.
Explosives maker Orica Limited (ASX:ORI) says its first half net profit fell 4 per cent to $253 million. The result has come in better than expected, in a period that saw Orica impacted by chemical leaks at its ammonia plant in New South Wales and a strong Australian dollar.
Internet real estate company iProperty Group Limited (ASX:IPP) is set to acquire Macau based vproperty.com for $US300,000. The acquisition will see iProperty’s real estate portal expand in the region.
Best and worst performers
The sector with the smallest losses was Utilities shedding 32 points to close at 4,680. The worst performing sector was Materials, losing 389 points to close at 10,536 points.
The best performing stock in the S&PASX 200 was Cabcharge Australia Limited (ASX:CAB), rising 4.01 per cent to close at $6.48. Shares in Energy World Corporation and Dexus Property Group also closed higher.
The worst performing stock was Dart Energy Limited (ASX:DTE) dropping 9.84 per cent to close at $0.28. Shares in Audrill and Bathurst Resources also closed lower.
Commodities
Gold is trading at $US1,639 an ounce.
Light crude is $4.05 down at $US98.49 a barrel.
The Australian Dollar
The Australian dollar is buying $US1.0148.
