Hit with negative leads the Australian share market sank at open and closed 0.9 per cent down. Offshore events weighed on sentiment amid the ongoing US budget debate, European anti-austerity protests and debt talks and an Israeli air strike in the Middle East. Mining and energy sectors bore the brunt of the sell-off with the telco sector the only one to avoid closing in the red.
Figures
The S&P/ASX 200 index dropped 39 points to end at 4,349. The value of trades was $4.5 billion on volume of 925 million shares. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), QBE Insurance Group Limited
(ASX:QBE) and Telstra Corporation Limited
(ASX:TLS).
On the futures market the SPI is 49 points down.
Economic news
Car sales in Australia fell last month broadly in line with expectations. The Australian Bureau of Statistics reports 95,720 new cars were sold in October, a fall of 2.8 per cent from the month before.
Company news Qantas Airways Limited
(ASX:QAN) will buy back $100 million of its shares to revive its sagging stock price. Australia’s largest carrier has also flagged plans to repay $650 million in debt ahead of schedule and forecast a flat first half profit. Shares in Qantas Airways lifted 4.07 per cent today, closing at $1.28.
Myer Holdings Limited
(ASX:MYR) has posted a 1 per cent rise in first quarter total sales on the back of improved consumer sentiment following the Reserve Bank of Australia’s interest rate cuts. The department store retailer says though warm spring weather has helped summer clothing sales it is still preparing for steady sales over Christmas trade. Shares in Myer Holdings gained 6.5 per cent today, closing at $2.13.
Shares in Lynas Corporation Limited
(ASX:LYC) sank despite telling the market a Malaysian Court has dismissed another bid to prevent the rare earths developer from producing in the country.
Shares in Sims Metal Management Limited
(ASX:SGM) tumbled after the metals recycler predicted challenging conditions, tighter margins and volatile pricing will likely chip off more than $140 million from its annual earnings.
Shares in James Hardie Industries plc
(ASX:JHX) dropped after the building products manufacturer booked a 35 per cent fall in its first half profit amid what it described as a subdued Australian market.
Shares in Mirvac Group
(ASX:MGR) closed lower after the real estate investor confirmed its full year profit guidance but warned a recovery in the Queensland property market is still some time away.
Best and worst performers
The only sector to avoid negative territory was Telco Services remaining steady to close at 1,410.
The worst performing sector was Materials, losing 195 points to close at 9,733 points.
The best performing stock in the S&PASX 200 was Myer Holdings Limited
(ASX:MYR), rising 6.5 per cent to close at $2.13. Shares in Seven West Media Limited
(ASX:SWM) and Aurora Oil & Gas Limited
(ASX:AUT) also closed higher.
The worst performing stock was Mirabela Nickel Limited
(ASX:MBN), dropping 9.64 per cent to close at $0.38. Shares in Mineral Deposits Limited
(ASX:MDL) and Energy World Corporation Limited
(ASX:EWC) also closed lower.
Commodities
Gold is trading at $US1,725 an ounce.
Light crude is $0.02 higher at $US86.34 a barrel.
The Australian dollar
The Australian dollar is buying $US1.036.
