Following soft leads and weaker than expected business data the Australian share market fell steadily throughout the day to close 1.53 per cent down. Losses were accelerated after hesitant trading on Wall Street, with investors continuing to await US fiscal cliff progress, while concerns surrounding Greek’s debt crisis continue unabated.
The S&P/ASX 200 index closed 68 points down to finish at 4,380. On the futures market, the SPI is currently 65 points down.
Economic news
The Australian Bureau of Statistics has reported a lift in Commercial finance as well as personal lending commitments in September. In data released today, business finance commitments rose 6.9 per cent in September to a seasonally adjusted $29.6 billion, from $27.7 billion in August. Personal lending commitments went up by 2.6 per cent to $7.4 billion, also seasonally adjusted.
Company news
Global miner BHP Billiton Limited (ASX:BHP) has been granted an extension until 2016 to proceed with its Olympic Dam expansion, with South Australian Premier Jay Weatherill saying the project was in the states best interests. BHP however cannot guarantee whether the project will proceed as it continues to cultivate unproven new technologies to aid the development of the sites expanded ore body. CEO Marius Kloppers conceded other uncertainties continue to overshadow the project, namely exchange rates, commodity prices and developments in the uranium market. Shares in BHP Billiton closed 1.6 per cent down at $33.75.
Seven West Media Limited (ASX:SWM) shares surged today after CEO Don Voelte told investors that the media company has implemented cost cutting inititiatives and reductions that will deliver $75 million in improved cash flow this year. Mr Voelte says that Seven aims to maintain and hopefully increase its net profit after tax compared to last year’s $227 million, although the cost cutting measures will not prevent a drop in first half earnings. Shares in Seven West closed 11.21 per cent higher at $1.29.
BrisConnections Units Trusts (ASX:BCS) placed its shares in an indefinite trading halt today as it commenced formal discussions with its lenders.
Responding to that announcement, construction company Leighton Holdings Limited (ASX:LEI) says it will review the carrying value of its $63 million deferred equity commitment to the stricken toll road operator.
Also today, Leighton Holdings Limited (ASX:LEI) confirmed a green light for its Collins Street office development in Melbourne and signed an agreement with Main Roads Western Australia for works on the $1 billion gateway WA project through subsidiary Leighton Contractors Pty Ltd.
In an effort to win market share, National Australia Bank Limited’s (ASX:NAB) online trading fees have reportedly been slashed to offer the lowest trading price of the big four banks.
Best and worst performers
All sectors finished lower today, the least losses were in Healthcare, dropping 52 points to close at 10,650.
The worst performing sector was Financials excluding real estate trusts, losing 102 points to close at 5,138.
The best performing stock in the S&PASX 200 was Seven West Media Limited on the back of its cost cutting intentions (ASX:SWM), rising 11.21 per cent to close at $1.29. Shares in Incitec Pivot Limited (ASX:IPL) and Cochlear Limited (ASX:COH) were also higher at market close.
The worst performing stock was CuDeco Limited (ASX:CDU), dropping 13.49 per cent to close at $4.04. Shares in Lynas Corporation Limited (ASX:LYC) and Acrux Limited (ASX:ACR) also finished the day lower.
Commodities
Gold is trading at $US1,724 an ounce. Light crude is $0.50 down at $US85.07 a barrel.
The Australian dollar
The Australian dollar is buying $US1.04.
