The Australian share market has ended the week higher despite dropping 0.8 per cent today. Local stocks accelerated losses after Wall Street fell amid fears the US could soon start tightening monetary policy and wind back its $US85 billion monthly bond-buying program.
While most major sectors fell gold stocks shone after the price for the precious metal hit a two-month high overnight and breathed some life into beaten down stocks such as Perseus Mining Limited
(ASX:PRU), St. Barbara Limited
(ASX:SBM), Newcrest Mining Limited
(ASX:NCM) and Silver Lake Resources Limited
(ASX:SLR).
On the home front earnings will continue to take centre stage next week with up to 90 companies releasing results.
Figures
The S&P/ASX 200 index dropped 39 points today narrowing the weekly gain of 6 points to finish at 5,114.
The value of trades was $4.8 billion on volume of 788 million shares at the close of trade.
The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), ANZ Banking Group
(ASX:ANZ) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 43 points lower.
Wall Street
US stocks have lost ground over the four trading days this week: The Dow Jones Industrial Average has lost 516 points, the S&P 500 Index has lost 46 points, the Nasdaq has lost 70 points and the 100 Index has lost 50 points.
Company news
ANZ Banking Group
(ASX:ANZ) has generated improved profits but warned net interest margins could continue to narrow. The bank’s statutory profit grew 7 per cent $4.7 billion and its cash profit rose 11 per cent to $4.8 billion in the first nine months of its financial year. CEO Mike Smith has affirmed ANZ is on track with its push into Asia and dismissed concerns about China's stalling growth as “overdone”. Shares in ANZ Banking Group dropped 3 per cent today, ending the week at $29.45.
Iron ore producer Fortescue Metals Group Limited
(ASX:FMG) has scored a $US1.15 billion investment from Taiwan’s Formosa Plastics. The funds will go into Fortescue’s Iron Bridge joint venture project with Shanghai Baosteel and will see Formosa emerge with a 31 per cent joint venture interest in the project. Iron Bridge was established 14 months ago but last year’s dramatic plunge in the iron ore price took the project off the radar until recently. Shares in Fortescue Metals Group fell 4.05 per cent today, ending the week at $4.03.
Oil and gas producer Santos Limited
(ASX:STO) has improved its first half net profit by 3 per cent, despite a 6 per cent fall in sales volumes, and maintained its full-year production guidance.
Energy investor Duet Group
(ASX:DUE) has increased its earnings but booked an annual profit fall in the same year it completed a corporate restructure, and, was impacted by a tax expense.
Car retailing company Automotive Group Holdings Limited
(ASX:AHE) has delivered record full year revenue and profit and spruiked sustainable long term value on the back of recent acquisitions.
Shares in APN News and Media Limited
(ASX:APN) surged after rebounding to first half net profit of $12.8 million from a loss and flagging the sale of its brandsExclusive site to strengthen its balance sheet.
Best and worst performers
The best performing sector was energy adding 114 points to close at 13,464.
The worst performing sector was consumer staples, losing 124 points to close at 9,696 points.
The best performing stock in the S&PASX 200 was Perseus Mining Limited
(ASX:PRU), rising 19.85 per cent to close at $0.79. Shares in St. Barbara Limited
(ASX:SBM) and Domino's Pizza Enterprises Limited
(ASX:DMP) also closed higher.
The worst performing stock was Energy World Corporation Limited
(ASX:EWC), dropping 7.69 per cent to close at $0.54. Shares in Ramsay Health Care Limited
(ASX:RHC) and Arrium Limited
(ASX:ARI) also closed lower.
Commodities
Gold is buying $US1,362 an ounce, up $74.03 over the week.
Light crude has lost $0.02 and is buying $US107 a barrel.
The Australian dollar
The Australian dollar is buying 91.52 US cents, up $US0.0232 over the week.
