The Australian share market traded in negative territory today and ended 0.5 per cent down as investors await outcomes from the US Federal Reserve's monetary policy meeting. Losses were driven by the heavyweight mining sector, pulling back 0.7 per cent, with energy and banking stocks also dragging. The telco sector was the only one to close higher on the same day Apple (NASDAQ:AAPL) released its new iPhone 5 in the US.
The S&P/ASX 200 index closed 22 points lower at 4,339. On the futures market the SPI is 18 points lower.
Economic news
Australia’s central bank has predicted China's steel demand will remain robust. The Reserve Bank of Australia’s September Bulletin says the outlook for the steel sector depends on more than just the outlook for construction, and even though residential construction growth is likely to decline over the coming decades, steel demand growth is not likely to decline to the same extent.
Company news Myer Holdings Limited’s
(ASX:MYR) full year underlying net profit has dropped 14 per cent to $139 million. The department store retailer was hit by subdued consumer sentiment and frugal shoppers in fiscal 2012 and says it expects cost headwinds to continue. Shares in Myer closed 1.08 per cent lower at $1.82.
Sigma Pharmaceutical Limited
(ASX:SIP) has increased its dividend payout, despite posting a fall in its interim profit, and announced a share buyback. The drug wholesaler’s first half net profit eased 2 per cent to $26 million, impacted by reforms to the pharmaceutical benefits scheme and reinvestment into the business. Shares in Sigma Pharmaceutical closed 2.9 per cent lower at $0.67.
Shares in Fortescue Metals Group Limited
(ASX:FMG) plunged late in the session after reports emerged the iron ore miner has requested its lenders waive all its debt covenants for the next year.
Rio Tinto Limited
(ASX:RIO) has awarded mining services provider NRW Holdings Limited
(ASX:NWH) a $133 million contract for work on its Cape Lambert Port B project in the Pilbara region of Western Australia.
Theme park operator Ardent Leisure Group
(ASX:AAD) has entered into a trading halt as it prepares to raise funds to acquire Fenix Fitness Clubs for $60.9 million.
Australia’s competition watchdog has deferred a ruling on Seven Group Holdings Limited’s
(ASX:SVW) possible bid for pay TV operator Consolidated Media Holdings Limited
(ASX:CMJ) and invited further submissions.
Best and worst performers
The only sector to close higher was telco services adding 7 points to close at 1,320.
The worst performing sector was health care, losing 146 points to close at 10,220 points.
The best performing stock in the S&PASX 200 was Panoramic Resources Limited
(ASX:PAN), rising 7.14 per cent to close at $0.53.
Shares in Aquarius Platinum Limited
(ASX:AQP) and Pacific Brands Limited
(ASX:PBG) also closed higher.
The worst performing stock was Arrium Limited
(ASX:ARI), dropping 15.25 per cent to close at $0.50.
Shares in Fortescue Metals Group Limited
(ASX:FMG) and Coalspur Mines Limited
(ASX:CPL) also closed lower.
Commodities
Gold is trading at $US1,732 an ounce.
Light crude is $0.05 down at $US96.96 a barrel.
The Australian dollar
The Australian dollar is buying $US1.047.
