The Australian share market has closed sharply lower, falling 0.7 per cent after a session spent entirely in negative territory, with telco services the only major sector to finish up. The largest losses were in the energy sector, while gold hit its lowest point in over a fortnight on speculation central banks will hold off on implementing stimulus measure to aid global growth.
The S&P/ASX 200 index closed 33 points down to finish at 4,725. The value of trades was $4.7 billion on volume of 861 million shares at the close of trade. The top three stocks by value were National Australia Bank Limited
(ASX:NAB), BHP Billiton Limited
(ASX:BHP) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 38 points down.
Economic news
Consumer confidence recovered slightly in June but fell well short of peaks experienced earlier this year, as fears around the prospects for the Australian economy persist. The Westpac Melbourne Institute Index of Consumer Sentiment rose 4.7 per cent in June to sit above the key 100-point threshold at 102.2, from 97.6 in May.
Business and personal finance commitments posted strong lifts in April, according to data from the Australian Bureau of Statistics. The data showed total business finance commitments lifted 3.2 per cent in the month to a seasonally adjusted $30.698 billion.
Company news
Wesfarmers Limited
(ASX:WES) supermarket chain Coles is facing federal court action from the Australian Competition and Consumer Commission over alleged false, misleading and deceptive conduct in the supply of bread. A commission spokesman says the ACCC is concerned that Coles’ lack of distinction in its promotional representations between bread products that are freshly prepared from scratch and par baked products is misleading to consumers and places competing bakeries that do freshly bake from scratch at a competitive disadvantage. Shares in Wesfarmers closed 1.66 per cent down at $37.23.
Watpac Limited
(ASX:WTP) will sell an inner city Brisbane development site to a private investor for $13 million. CEO Martin Monro says the sale forms part of the group’s ongoing strategy to divest property assets to reduce property debt and recycle capital back into existing businesses. Shares in Watpac closed 1.72 per cent down at $0.57.
Newcrest Mining Limited
(ASX:NCM) has officially denied it selectively briefed analysts ahead of announcing $6 billion in writedowns last week, in a formal response to the ASX.
Wesfarmers Limited
(ASX:WES) owned Target will cut 260 jobs as part of a restructure of its business operations. The jobs will go from the company's store support centre in Geelong and in regional support locations.
Rio Tinto Limited
(ASX:RIO) is close to selling a large minority stake in Coal & Allied as well as holdings in some of its Queensland coal mines, according to media reports.
James Hardie Industries PLC
(ASX:JHX) has appointed Matthew Marsh, a senior executive from GE, to replace outgoing CFO Russell Chenu. Marsh will join the building materials maker later this month.
Best and worst performers
The best performing sector was Telco services, the only major sector to finish stronger, adding 4 points to close at 1,591.
The worst performing sector was Energy, losing 125 points to close at 12,762.
The best performing stock in the S&PASX 200 was Discovery Metals Limited
(ASX:DML), rising 8.33 per cent to close at $0.20. Shares in St. Barbara Limited
(ASX:SBM) and M2 Telecommunications Group Limited
(ASX:MTU) also closed higher.
The worst performing stock was Senex Energy Limited
(ASX:SXY), dropping 7.76 per cent to close at $0.54. Shares in Boart Longyear Limited
(ASX:BLY) and Transfield Services Limited
(ASX:TSE) also closed lower.
Commodities
Gold is trading at $US1,374 an ounce. Light crude is $0.82 down at $US94.56 a barrel.
The Australian dollar
The Australian dollar is buying $US0.944.
