The Australian share market has closed 1.3 per cent lower ahead of a summit of European leaders.
Today, the S&P/ASX 200 index closed 54 points weaker to finish at 4,067. On the futures market, the SPI is currently 68 points lower.
Economic news
The World Bank cuts its economic growth forecast for China this year to 8.2 per cent from 8.4 per cent previously.
And the Westpac–Melbourne Institute Leading Index, which indicates the likely pace of economic activity three to nine months into the future, was 2.2 per cent in March, below its long term trend of 2.9 per cent.
Company news Myer Holdings Limited
(ASX:MYR) has lowered its full year profit guidance, expecting net profit to be no worse than 15 per cent below last financial year. Previous guidance had been for not worse than 10 per cent. The retailer today reported third quarter sales for the 13 weeks to April 28 of $651.1 million, down 0.9 per cent compared to last year, or a fall of 2.1 per cent on a like-for-like basis. Myer said the fall in profit and outlook was because of the challenging and unpredictable retail environment. Myer shares closed 7.83 per cent lower at $2.00.
Qantas Airways Limited
(ASX:QAN) is reducing services to the Northern Territory saying the performance on the affected routes has been poor for some time. Management blamed a fall in tourism because of the high Australian dollar, for the cuts. The aircraft will be redeployed onto more profitable routes. Qantas shares closed 0.34 per cent weaker at $1.47.
Fairfax Media Limited
(ASX:FXJ) announces board changes, with James Millar replacing Robert Savage.
The Queensland government approves Rio Tinto Limited’s
(ASX:RIO) Cape York mine expansion.
Iluka Resources Limited
(ASX:ILU) expects earnings to rise this calendar year, despite weaker demand.
And graphite miner Syrah Resources Limited
(ASX:SYR) shares double based on the preliminary results of a single drill hole.
Best and worst performers
The sector with the smallest losses was Health Care falling 43 points to close at 8,945. The worst performing sector was Materials, falling 167 points to close at 9,705 points.
The best performing stock in the S&P/ASX 200 was AWE Limited
(ASX:AWE) rising 2.87 per cent to close at $1.61. Shares in Acrux Limited
(ASX:ACR) and Primary Health Care
(ASX:PRY) also closed higher.
The worst performing stock was Linc Energy Limited
(ASX:LNC) dropping 13.14 per cent to $0.59. Shares in OneSteel Limited
(ASX:OST) and Myer Holdings Limited
(ASX:MYR) also closed lower.
IPO
Zeta Petroleum PLC (ASX: ZTA) floated today with an issue price of 20 cents, opening price of 11 cents and closing price of 13.5 cents.
Commodities
Gold is trading at $US1,557 an ounce. Light crude is $0.22 lower at $US91.44 a barrel.
The Australian dollar
The Australian dollar is buying 97.71 US cents.
