The Australian share market sank to session lows today, closing 0.5 per cent down. Dismissing fresh records on Wall Street investors took the lead from weak eurozone growth numbers. The Australian dollar continued its decline as the health and mining sectors bore the brunt of the selling. Gold stocks also took a battering as the price of gold sank below $US1,400 per tonne overnight.
Commentary
FNN speaks with gold development company Kingsgate Consolidated Limited
(ASX:KCN) Managing Director and CEO, Gavin Thomas, who gives perspective to the plunging gold price at the RIU Resources Round-Up conference in Sydney.
Figures The S&P/ASX 200 index fell 26 points today, closing at 5,166.
The value of trades was $5.3 billion on volume of 906 million shares at the close of trade.
The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and Wesfarmers Limited
(ASX:WES).
On the futures market the SPI is 32 points lower.
Commentary
FNN speaks with Simon Hadfield, Resource Information Unit Managing Director and Peel Mining Limited
(ASX:PEX) Non-Executive Chairman, about the week's highlights at the RIU Resources Round-Up conference in Sydney.
Economic news
Imports of goods rose 1 per cent last month. The Australian Bureau of Statistics reports imports of goods gained $118 million to hit $20.017 billion in April 2013.
Australia's resources sector investment has been predicted to peak at $85 billion in 2013. Consulting Group Wood Mackenzie has forecast spending in the oil and gas sector will make up about 50 per cent of investment, followed by iron ore at 25 per cent and coal at 10 per cent.
Company news
Sydney Airport Limited’s
(ASX:SYD) investors have climbed on board the stock after the airport operator flagged its best ever dividend. The company expects to pay a full year distribution of about 22.5 cents per security on the back of growth from more passengers.
Shares in Sydney Airport lifted 0.82 per cent today, closing at $3.69.
Shares in Clean Seas Tuna Limited
(ASX:CSS) soared after the aquaculture operation affirmed its goal of becoming a profitable production by 2015. The South Australian-based fish farming company expects to narrow its annual loss to between $4-6 million and says it will claw out of the red within two years. Shares in Clean Seas Tuna jumped 45.45 per cent today, closing at $0.02.
Shares in Fortescue Metals Group Limited
(ASX:FMG) dropped on news iron ore developer Brockman Mining Limited
(ASX:BCK) has applied to access its below-rail infrastructure.
Shares in Tabcorp Holdings Limited
(ASX:TAH) closed steady after the gaming company launched legal action against the Victorian government concerning a poker machine levy.
Shares in Virgin Australia Holdings Limited
(ASX:VAH) plunged after the airline predicted its full year earnings will fall below last year’s result.
Shares in Australian Infrastructure Fund Limited
(ASX:AIX) shed more than 90 per cent as the infrastructure investor’s stock traded ex-capital return following asset sales.
Best and worst performers
The best performing sector was consumer staples adding 178 points to close at 10,443.
The worst performing sector was health care, losing 272 points to close at 13,132 points.
The best performing stock in the S&PASX 200 was SEEK Limited
(ASX:SEK), rising 8.72 per cent to close at $11.10. Shares in Whitehaven Coal Limited
(ASX:WHC) and Nufarm Limited
(ASX:NUF) also closed higher.
The worst performing stock was Virgin Australia Holdings Limited
(ASX:VAH), dropping 17.39 per cent to close at $0.38. Shares in Ausdrill Limited
(ASX:ASL) and Evolution
(ASX:EVN) also closed lower.
Commodities
Gold is trading at $US1,391 an ounce.
Light crude is $0.49 down at $US94.07 a barrel.
The Australian dollar
The Australian dollar is buying 98.33 US cents.
