The Australian share market has broken through the psychological barrier of 4000, sinking more than 1.5 per cent at open and remaining at session lows. Weak economic data from Europe, China and the US has abated risk appetite with energy stocks bearing the brunt of the sell-off.
The S&P/ASX 200 index has plunged 72 points and is 3,992. On the futures market the SPI is 74 points down.
Economic news
The TD Securities and Melbourne Institute’s Inflation Gauge has come in steady for last month, maintaining the annual rate of inflation at 1.8 per cent, below the Reserve Bank of Australia's (RBA) target range of between 2 and 3 per cent.
Company news
Employment website SEEK Limited (ASX:SEK) has confirmed its full year earnings guidance and announced plans to raise $125 million. SEEK will issue subordinated notes through an offer to eligible shareholders which the company says will strengthen its capital position, pay down debt and enable it to fund future investment. SEEK has also maintained its forecast for revenue and EBITDA to grow strongly ahead of the year before. Shares in SEEK are trading 3.42 per cent down at $6.49.
Singapore Telecommunications Limited’s (ASX:SGT) Australia arm Optus is reportedly advancing its plans to build a fourth-generation, or 4G, mobile network across Australia. According to The Australian the telecommunications company has come up with a list of five equipment suppliers to compete for a contract that could be worth up to $1 billion. Shares in SingTel are trading 0.61 per cent down at $2.46.
Best and worst performers
The only sector trading on positive ground is Telco Services adding 5 points to 1,253. Shares in Telstra Corporation Limited (ASX:TLS) have risen 0.27 per cent and trading at $3.65. Shares in Telecom Corporation of New Zealand (ASX:TEL) and Singapore Telecommunications Limited (ASX:SGT) are weaker.
The worst performing sector is Energy, falling 416 points to 1,281. Shares in Dart Energy Limited (ASX:DTE) have fallen 9.76 per cent, trading at $0.18. Shares in Coalspur Mines Limited (ASX:CPL) and Karoon Gas Australia Limited (ASX:KAR) are also lower.
Gold and the dollar
Gold is trading at $US1,617 an ounce.
The Australian dollar is buying 96.37 US cents.
