The Australian share market has closed 1.9 per cent down after spending the day in negative territory and wiping approximately $25 billion off the markets value. The market hit the days lows on some weak retail data however most losses have stemmed from offshore investors selling off in the face of the declining Aussie dollar, which plumbed new lows today, as well as general global instability over the situation in China, the eurozone and the political crisis gripping Egypt.
The S&P/ASX 200 index closed 90 points down to finish at 4,744. The value of trades was $4.8 billion on volume of 843 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 ANZ Banking Group
(ASX:ANZ).
On the futures market the SPI is 83 points down.
Economic news
The Australian Bureau of Statistics says Australia’s trade surplus expanded well ahead of analyst expectations in May, growing by 292 per cent to $670 million, with exports and imports rising in the month.
New home sales rose for the third straight month in May, reaching their highest level in 18 months. The Housing Industry Association says sales of new homes went up by 1.6 per cent in May.
Activity in the services sector is in contraction for the 17th consecutive month despite recording a slight rise in June. The Australian Industry Group- Commonwealth Bank Performance of Services Index rose 0.9 points to 41.5,with the sector dragged down by weak demand from households and businesses.
The Australian Bureau of Statistics says Australian retail sales saw a slight rise in May however fell short of analysts expectations. Retail spending edged 0.1 per cent higher to $21.82 billion, below estimates of a 0.3 per cent lift.
Company news
Woodside Petroleum Limited
(ASX:WPL) has cuts its 2013 production guidance on the back of an unplanned shutdown at its flagship Pluto LNG asset. The oil and gas giant reduced its production target range to between 85 and 89 million barrels, down from previous guidance of 88 to 94 million barrels. Shares in Woodside closed 3.35 per cent down at $34.62.
GPT Group
(ASX:GPT) has sold its Homemaker Centre in Brisbane’s Fortitude Valley for $103.2 million, representing a one per cent premium to its December 2012 book value. Head of Investment Management Carmel Hourigan says the sale completes the divestment of the group’s Brisbane Homemaker portfolio, following sales of two other centres for $91.7 million earlier this year. Shares in GPT closed 3.07 per cent down at $3.79.
BHP Billiton Limited
(ASX:BHP) says its new remote operations centre in Perth and a trial of driverless trucks will boost productivity without sacrificing jobs.
ANZ Banking Group
(ASX:ANZ) ANZ has launched a $750 million raising through a capital notes issue, ahead of a rival debt issue by Westpac Banking Corp
(ASX:WBC) scheduled for Monday.
Flight Centre Limited
(ASX:FLT) is expecting full-year profit before tax at the higher end of its updated guidance following strong performances by the Australian and United Kingdom arms of the business.
Brockman Resources Limited
(ASX:BCK) has joined with Aurizon Holdings Limited
(ASX:AZJ) in a three year contract to develop and operate the infrastructure required by the group for two of its projects.
Best and worst performers
All the major sectors finished in the red. The fewest losses were in Utilities, shedding 0.3 points to close at 5,300.
The worst performing sector was Materials, losing 223 points to close at 8,472.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 18.18 per cent to close at $0.20. Shares in Perseus Mining Limited
(ASX:PRU) and Linc Energy Limited
(ASX:LNC) also closed higher.
The worst performing stock was Emeco Holdings Limited
(ASX:EHL), dropping 12.73 per cent to close at $0.24. Shares in Boart Longyear Limited
(ASX:BLY) and CuDeco Limited
(ASX:CDU) also closed lower.
Commodities
Gold is trading at $US1,242 an ounce. Light crude is $2.07 up at $US101.67 a barrel.
The Australian dollar
The Australian dollar fell to a fresh 34 month low today after RBA Governor Glenn Stevens said the economy would probably get a lower exchange rate if it needed it. The local currency has extended losses in late trade and is currently buying $US0.9073.
