The Australian share market hit session lows to end the day 0.4 per cent down after US federal reserve chairman Ben Bernanke cautioned that a failure to resolve America’s budget situation could lead to a recession and euro zone finance ministers failed to reach a resolution agreement over Greece’s debt situation. The ASX was further weighed down by losses in health and energy stocks.
Figures
The S&P/ASX 200 index closed 16 points down to finish at 4,370. The value of trades was $3.3 billion on volume of 686 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited (ASX:NAB), BHP Billiton Limited (ASX:BHP), Commonwealth Bank of Australia (ASX:CBA).
On the futures market, the SPI is currently 18 points lower.
Economic news
Westpac and the Melbourne institutes leading indexes of economic activity has indicated Australia’s economic growth is likely to be above trend in the early part of next year, after reaching 4.1 per cent in September. The figure came in above its long term trend of 2.8 per cent for the second consecutive month.
The department of Education, Employment and Workplace Relations internet vacancy index rose by 2.5 per cent in October, with vacancies for labourers and sales workers rising by 6.4 and 5.5 per cent respectively.
Company news
Rio Tinto Limited (ASX:RIO) controlled Copper and gold miner Ivanhoe Australia Limited (ASX:IVA) has announced an $80 million capital raising initiative, with New York listed major shareholder Turquoise Hill agreeing to contribute $40 million. CEO Ines Scotland says the entitlement offer will complement operating cash flows from the company’s Queensland based Osborne project ensure the company is fully funded for planned operations and exploration. Shares in Ivanhoe Australia are in a trading halt, they last traded at $0.54.
Drillsearch Energy Limited ( ASX:DLS) has revised its fiscal 2013 production forecast to between 1.3 and 1.6 million barrels of oil, as part of its transition from a junior to a mid tier producer. CEO Brad Lingo says the planned growth will come from its oil rather than gas business, with Drillsearch aiming to bring its Cooper Basin based Bauer oil field into production this year. Shares in Drillsearch closed 2.67 per cent down at $1.46.
Property development group Watpac Limited (ASX:WTP) says its construction division has been awarded a $40 million contract to design and construct the expansion of Darwin’s International airport.
Envestra Limited’s (ASX:ENV) credit rating outlook has been revised from stable to positive by Standard & Poors (S&P).
New Zealand’s largest public company, dual listed Fletcher Building Limited (ASX:FBU) has lifted its guidance for the 2013 financial year, flagging a 12 to 22 per cent lift in earnings.
QR National (ASX:QRN) reported a 1 per cent decline in haulage volumes in the first four months of its financial year, with soft demand expected to continue in the short term.
Best and worst performers
The best performing sector was Telco services adding 3 points to close at 1,433.
The worst performing sector was Healthcare, losing 210 points to close at 10,598 points.
The best performing stock in the S&PASX 200 was Energy World Corporation Limited (ASX:EWC), rising 9.43 per cent to close at $0.29. Shares in Beadell Resources Limited (ASX:BDR) and Aristocrat Leisure Limited (ASX:ALL) also closed higher.
The worst performing stock was David Jones Limited (ASX:DJS), dropping 6.23 per cent to close at $2.41. Shares in Boart Longyear Limited (ASX:BLY) and FlexiGroup Limited (ASX:FXL) also finished the day lower.
Commodities
Gold is trading at $US1,722 an ounce.
Light crude is $0.02 up at $US86.77 a barrel.
The Australian dollar
The Australian dollar is buying $US1.035.
