The Australian share market has dropped more than 1 per cent following negative leads. Global markets sank following slashed global growth forecasts and fears the US Federal Reserve may scale back its bond buying stimulus program.
Across the local board - worse than expected private capital expenditure figures have sparked a further sell-off in the mining and banking sectors. Gold stocks have felt some support after the price for the precious metal rose overnight. The financials are feeling the weight of banking-major National Australia Bank Limited
(ASX:NAB) trading ex-dividend [paying a 93 cent fully franked dividend].
Figures
The S&P/ASX 200 index has plunged 56 points, falling to 4,919. On the futures market the SPI is 56 points lower.
Economic news
Australian private capital expenditure declined more than expected in the first three months of 2013. The Australian Bureau of Statistics (ABS) reports private capital expenditure dropped 4.7 per cent in the March quarter, against expectations of a 0.5 per cent lift.
Building approvals rose by more than expected last month. The ABS has shown building approvals gained 9.1 per cent in April after rising 5.5 per cent in March 2013.
Company news Seven Group Holdings Limited
(ASX:SVW) has a new managing director and chief executive – with Don Voelte poised to take the reins from July and replace Peter Gammell.
Mr Voelte will make the move after departing as the chief of Seven West Media Limited (ASX:SWM) and used to head oil and gas giant Woodside Petroleum Limited (ASX:WPL). Seven Group Chairman Kerry Stokes has thrown his support behind Mr Voelte and highlighted the results he was able to achieve at Seven West amid a challenging media and consumer landscape. Shares in Seven Group Holdings have lost 2.89 per cent and are trading at $7.38.
Ruralco Holdings Limited’s
(ASX:RHL) has scored the green light from Australia’s competition watchdog
to buy rival agribusiness Elders Limited (ASX:ELD). The Australian Competition and Consumer Commission (ACCC) says it will not oppose Ruralco’s proposed acquisition of Elders Rural Services as a merger shouldn’t adversely impact others in sector. Ruralco is yet to finalise a takeover proposal for Elders but earlier advised it would update the market once the ACCC’s review was known. Shares in Ruralco have added more than 7 per cent following the news while shares in Elders have soared 20 per cent to $0.12.
Best and worst performers All sectors have slumped into the red: The only major sector bucking the trend is energy, adding 24 points to 13,253. Shares in Maverick Drilling and Exploration Limited
(ASX:MAD) have risen 7.14 per cent and trading at $0.38. Shares in Paladin Energy Limited
(ASX:PDN) and Buru Energy Limited
(ASX:BRU) are also stronger.
The worst performing sector is telco services, falling 34 points to 1,657. Shares in TPG Telecom Limited
(ASX:TPM) have fallen 2.94 per cent, trading at $3.46. Shares in Singapore Telecommunications Limited
(ASX:SGT) and Telstra Corporation Limited
(ASX:TLS) are also lower.
Gold and the dollar
Gold is trading at $US1,396 an ounce.
The Australian dollar is buying 96.6 US cents.
