The Australian share market snapped its winning run today, plunging 2.3 per cent by session’s end and following Asia markets lower. Negative leads pushed local stocks down at open, retreating from multi-year highs to fall below the 5,000 barrier by close.
Investors were spooked by speculation the US Federal Reserve could abandon its stimulus program earlier than expected and reports China is considering implementing measures to cool its property market.
Commodity stocks bore the brunt of the sell-off with the energy and mining sectors pulling back from the recent rally as the price of gold continued to head south.
Figures
The S&P/ASX 200 index plunged 119 points to end the session at 4,980.
The value of trades was $6.8 billion on volume of 1 billion shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Westpac Banking Corporation
(ASX:WBC) and Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI has sunk 106 points.
Economic news
Average weekly time earnings rose last year. The Australian Bureau of Statistics has reported earnings lifted 5 per cent for adult full-time employees in the 12 months to the end of November 2012.
Job cuts
Telstra Corporation Limited
(ASX:TLS)is expected to slash about 650 jobs from its ailing Yellow Pages Sensis business only weeks after the telco reported a record profit result.
The anticipated job cuts are understood to be part of a planned restructure in an effort to reverse the recent revenue decline in its directory division and transition the unit to a digital media business. Shares in Telstra Corporation closed 1.32 per cent lower at $4.50.
Iluka Resources Limited
(ASX:ILU) has flagged up to 200 job cuts and plans to lower production in response to softening prices and demand for its products.
The mineral sands producer today revealed a 33 per cent full year profit fall. Managing Director David Robb says a turning point in the mineral sands business cycle may be approaching. Shares in Iluka Resources finished 1.45 per cent lower at $10.20.
Shares in Origin Energy Limited
(ASX:ORG) sank after cutting its full year guidance and booking a 34 per cent first half net profit slide. The energy giant’s result was hit by high wholesale power prices and regulatory pressures. Origin says it expects to cut 850 jobs by the end of 2013.
Earnings results
Shares in Qantas Airways Limited
(ASX:QAN) lifted as the airline’s first half net profit almost trebled, aided by a one-off gain from the sale of its interest in a freight joint venture.
Shares in AMP Limited
(ASX:AMP) lost ground despite the financial services group posting a 2.3 per cent rise in its annual net profit on the back of benefits from its AXA Asia Pacific merger in 2011.
Shares in Insurance Australia Group Limited
(ASX:IAG) added 2.5 per cent as the insurer boosted its first half net profit, lifted its dividend and improved its full year guidance.
Best & worst performers
All sectors ended in negative territory: The sector with the smallest losses was utilities, falling 31 points to close at 5,393.
The worst performing sector was energy, losing 621 points to close at 13,007 points.
The best performing stock in the S&PASX 200 was SEEK Limited
(ASX:SEK), rising 4.65 per cent to close at $9.91. Shares in Troy Resources Limited
(ASX:TRY) and Qantas Airways Limited
(ASX:QAN) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 13.08 per cent to close at $0.57. Shares in Aquila Resources Limited
(ASX:AQA) and Silver Lake Resources Limited
(ASX:SLR) also closed lower.
Commodities
Gold is trading at $US1,559 an ounce.
Light crude is $0.85 down at $US94.37 a barrel.
The Australian dollar
The Australian dollar is buying $US1.024.
