The Australian share market has closed at session lows, 1.6 per cent in the red, led down by the Materials sector, with approximately $25 billion wiped off the markets capitalization as mining investors continued to sell off in response to plunging commodity prices.
The S&P/ASX 200 index closed 80 points down to finish at 4,924.
The value of trades was $1.1 billion on volume of 6.2 billion shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Telstra Corporation Limited
(ASX:TLS) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 79 points down.
Economic news
NAB’s monthly business survey has indicated an increase in sentiment in January. The survey indicated a seven point rise in business confidence to kick off the year, coming in at a reading of plus two. The reading comes on the back of better results in construction activity as well as the finance sector.
Company news
Woodside Petroleum Limited
(ASX:WPL) has shelved another significant growth option, revealing it’s ended talks with other gas-field owners to expand its Pluto LNG venture. The announcement comes a week after abandoning expensive plans to build a new plant at James Price Point. Shares in Woodside Petroleum closed 3.48 per cent down at $33.86.
Fortescue Metals Group Limited
(ASX:FMG) chief executive Nev Power believes China’s demand for resources will continue to bolster iron ore prices as the world’s second largest economy continues to pursue development plans. The comments come after the iron ore miner reported a 3 per cent increase in production and reaffirmed its aggressive expansion plans. Fortescue shares closed down 7.80 per cent $3.43.
BHP Billiton Limited
(ASX:BHP) announced its new senior management team to take shape under recently appointed chief Andrew Mackenzie, with chief Mike Yeager set to retire at the start of July.
Shares in Telstra Corporation Limited
(ASX:TLS) are up 0.62 per cent at after the telco inked a $1.1 billion contract with Defence for the integration of fixed lines with satellite and tactical networks.
Iluka Resources Limited
(ASX:ILU) shares sagged over 6 per cent after the mineral producer revealed a near halving of production in the March quarter.
Bank of Queensland Limited
(ASX:BOQ) boosted its half year net profit by 37 per cent on the back of asset re-pricing and a re-focusing of its deposit structure.
Best and worst performers
All major sectors finished in the red today, the best performer among them was Real Estate Investment Trusts, dropping 4 points to close at 1,085.
The worst performing sector was Materials, losing 415 points to close at 8,680 points.
The best performing stock in the S&PASX 200 was Sundance Resources Limited
(ASX:SDL), rising 6.38 per cent to close at $0.10. Shares in Carsales.com Limited
(ASX:CRZ) and BWP Trust
(ASX:BWP) also closed higher.
The worst performing stock was Boart Longyear Limited
(ASX:BLY), dropping 14.95 per cent to close at $0.83. Shares in Buru Energy Limited
(ASX:BRU) and Coalspur Mines Limited
(ASX:CPL) also closed lower.
Commodities
Gold is trading at $US1,376 an ounce. Light crude is $0.09 down at $US86.59 a barrel.
The Australian dollar
The Australian dollar is buying $US1.03.
