The Australian share market recovered from the days lows on some upbeat Chinese manufacturing data however still finished 0.5 per cent lower, with Energy and Materials stocks dragging. The major miners mostly spent the session in reverse, while some heavy falls among gold miners saw the gold sector shed 6.2 per cent.
The S&P/ASX 200 index closed 24 points down to finish at 5,253. The value of trades was $3.2 billion on volume of 571 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Westpac Banking Corporation
(ASX:WBC) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 8 points down.
Economic news
Activity in China's manufacturing sector expanded slightly in September to hit a six-month high, according to the HSBC flash China manufacturing purchasing managers' index. The index printed at 51.2, after a read of 50.1 in August. A reading above 50 signals expansion.
Company news
Newcrest Mining Limited
(ASX:NCM) Chairman Don Mercer has flagged a cost-conscious year ahead, placing executives on notice for further pay cuts. Mr Mercer says in the gold miners annual report that executives and people in management roles will receive nil to very low incentives this year, following a glut of pay cuts in fiscal 2013, headed by CEO Greg Robinson, whose pay has been slashed by 27 per cent. Shares in Newcrest closed 8.17 per cent down at $12.03.
Orica Limited
(ASX:ORI) senior executive Alison Andrew is stepping down as the chemical and explosive makers global head of chemicals after just nine months in the role. Ms Andrew will become chief of electricity grid operator Transpower New Zealand, and will be replaced by current head of global strategy and planning Andrew Larke. Shares in Orica closed 0.34 per cent down at $20.30.
The board of Ruralco Holdings Limited
(ASX:RHL) is considering selling its 12 per cent stake in Elders Limited
(ASX:ELD) but wants to see full year results before deciding. The news comes after Ruralco’s $245 million takeover offer for Elders rural services division was rejected in June.
Treasury Wine Estates Limited
(ASX:TWE) CEO David Dearie resigned effective immediately, sending shares on a 6.32 per cent slide. Chairman Paul Rayner says the board is looking for a new CEO after completing a review following the write-down of excess US inventory.
Rio Tinto Limited
(ASX:RIO) subsidiary Pacific Aluminium is considering curtailing production at its alumina refinery at Gove in the Northern Territory.
Macquarie Group Limited
(ASX:MQG) shares fell 1.76 per cent despite maintaining its profit guidance for the current financial year, saying it expects earnings to increase provided market conditions do not deteriorate sharply.
Best and worst performers
The best performing sector was Consumer Discretionary adding 2 points to close at 1,768.
The worst performing sector was Energy, losing 153 to close at 14,013 points.
The best performing stock in the S&PASX 200 was STW Communications Group Limited
(ASX:SGN), rising 3.73 per cent to close at $1.67. Shares in Atlas Iron Limited
(ASX:AGO) and JB Hi-Fi Limited
(ASX:JBH) also closed higher.
The worst performing stock was Perseus Mining Limited
(ASX:PRU), dropping 15.67 per cent to close at $0.57. Shares in Alacer Gold Corp - CDI
(ASX:AQG) and Newcrest Mining Limited
(ASX:NCM) also closed lower.
Commodities
Gold is trading at $US1,325 an ounce. Light crude is $1.72 down at $US104.67 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9435.
