The Australian share market closed 1.1 per cent down, taking a sharp drop just before close on the back of a late sell off. Gold stocks took a beating on a day when the Aussie dollar also came under pressure. No major sectors finished in positive territory, barring real estate investment trusts which ended steady.
The S&P/ASX 200 index closed 54 points down to finish at 4,781. The value of trades was $5.1 billion on volume of 870 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), Commonwealth Bank of Australia
(ASX:CBA) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 49 points down.
Economic news
Australia's trade balance maintained a surplus in April but narrowed considerably in the month, according to the Australian Bureau of Statistics. The nation's trade balance narrowed 95 per cent to $28 million. During the month, exports fell one per cent, while imports rose one per cent.
Currency
The Aussie dollar took a tumble today, hitting a 20 month low of $US0.9442, its lowest level in 20 months. So far this month the Aus dollar has recorded the biggest fall against the greenback among global currencies, and has fallen over 10 per cent in the past forty sessions.
Australian dollar is currently buying $US0.9454.
Company news
Newcrest Mining Limited
(ASX:NCM) shares plunged to a fresh eight-year low, on top of yesterday’s 5 per cent fall, equating to a whopping $20 billion being wiped off the value of the gold miners stock in just under two years. Newcrest's position as the nation's third-biggest miner after BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO) has now been surrendered to Fortescue Metals Group
(ASX:FMG). Shares in Newcrest closed 6.9 per cent down at $13.36.
Virgin Australia Holdings Limited
(ASX:VAH) chief John Borghetti believes Air New Zealand’s three per cent stake increase in the airline will not have an impact on the business. Mr Borghetti said simply that nothing will change for Virgin, as Air New Zealand doesn’t have a board seat.
For its part, Air New Zealand says it has no intention of taking control of the airline. Shares in Virgin Australia closed 3.26 per cent down at $0.45.
Fairfax Media Limited
(ASX:FXJ) CEO Greg Hywood says the media company can save $60 million by the end of September as part of an operational restructure.
Air New Zealand
(ASX:AIZ) confirmed it will increase its stake in Virgin Australia Holdings Limited
(ASX:VAH) by three per cent to 22.9 per cent.
Woolworths Limited
(ASX:WOW) planned purchase of a second supermarket site in Glenmore Park from Stockland
(ASX:SGP) will be opposed by the Australian Competition and Consumer Commission.
Qantas Airways Limited
(ASX:QAN) has announced a major investor in Jetstar Hong Kong, with tourism and hospitality conglomerate Shun Tak taking a 33.3 per cent share of the low cost airline.
Best and worst performers
The best performing sector was Real estate investment trusts, closing steady at 1,025.
The worst performing sector was Energy, losing 208 points to close at 12,786.
The best performing stock in the S&PASX 200 was Coalspur Mines Limited
(ASX:CPL), rising 12.5 per cent to close at $0.27. Shares in Horizon Oil Limited
(ASX:HZN) and Alacer Gold Corp - CDI
(ASX:AQG) also closed higher.
The worst performing stock was Discovery Metals Limited
(ASX:DML), dropping 10.81 per cent to close at $0.17. Shares in Newcrest Mining Limited
(ASX:NCM) and Ausdrill Limited
(ASX:ASL) also closed lower.
Commodities
Gold is trading at $US1,397 an ounce. Light crude is $0.16 up at $US93.90 a barrel.
