The Australian share market has today extended a weekly loss of 1.2 per cent. Rejecting positive leads local stocks dropped at open and traded in negative territory but ended off the session's low. Growth concerns weighed on sentiment after the RBA cuts its outlook for domestic Gross Domestic Product (GDP) and following a series of Chinese economic indicators. In the week ahead Australian earnings reports will continue to roll with about 40 major companies due to release results.
Figures
The S&P/ASX 200 eased 10 points today, widening the weekly fall of 62 points to finish at 5,055.
The value of trades was $3.8 billion on volume of 679 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 Rio Tinto Limited
(ASX:RIO).
On the futures market the SPI is 3 points higher.
Wall Street
US stocks have mainly dropped over the four trading days this week: The Dow Jones Industrial Average lost 130 points, the S&P 500 Index lost 9 points, the Nasdaq lost 7 points and the 100 Index added 4 points.
Economic news
The Reserve Bank of Australia (RBA) has cut its outlook for growth and expressed uncertainty about how the economy will transition from a period of significant mining investment. The Central Bank’s quarterly monetary policy statement predicts GDP to grow 2.25 per cent this year, down from predictions of 2.5 per cent three months ago.
China's consumer price index (CPI), a main gauge of inflation, stayed steady last month. The National Bureau of Statistics reports the CPI came in at 2.7 per cent in July, against expectations for a rise to 2.8 per cent. Producer prices dropped for the 17th straight month, down 2.3 per cent in July compared to a 2.7 per cent drop the month before.
Company news
ANZ Banking Group
(ASX:ANZ) has become the last of the Big Four banks to pass on the RBA’s interest rate cut. ANZ's standard variable rate will drop by 25 basis points to 5.88 per cent from next Friday bringing the rate to the equal lowest with National Australia Bank Limited
(ASX:NAB). The RBA cut Australia’s official cash rate to a new record low of 2.5 per cent earlier this week. Shares in ANZ Banking Group dipped 0.54 per cent today, ending the week at $29.23.
As reporting season gets into gear Tabcorp Holdings Limited
(ASX:TAH) has today revealed its annual net profit fell 63 per cent to $126.6 million. The gaming company’s result was impacted by costs associated with the restructure of the gambling industry, including the new wagering and gaming licence structure in Victoria. Shares in Tabcorp Holdings fell 2.68 per cent today, finishing the week at $3.27.
Shares in News Corporation
(ASX:NNC) eased 0.06 per cent after the media company’s Australian arm switched CEO’s. News executive Julian Clarke will take the reins from this Monday, replacing Kim Williams.
Shares in FKP Property Group
(ASX:FKP) fell 3.33 per cent after the property and investment company revealed a $187.9 million write-down and said it will ask for shareholder approval to change its name to Aveo Group to reflect its refined strategy.
Best and worst performers
The best performing sector was materials adding 156 points to close at 9,519.
The worst performing sector was health care, losing 119 points to close at 13,577 points.
The best performing stock in the S&PASX 200 was Iress Limited
(ASX:IRE), rising 7.85 per cent to close at $8.70. Shares in St. Barbara Limited
(ASX:SBM) and Lynas Corporation Limited
(ASX:LYC) also closed higher.
The worst performing stock was Transfield Services Limited
(ASX:TSE), dropping 4.89 per cent to close at $0.88. Shares in Flight Centre Limited
(ASX:FLT) and Fairfax Media Limited
(ASX:FXJ) also closed lower.
Commodities
Gold is trading at $US1,307 an ounce, down $3.55 over the week.
Light crude is $0.97 lower at $US103.40 a barrel.
The Australian dollar
The Australian dollar is buying 91.44 US cents, down $0.024 over the week.
