The Australian share market widened the biggest weekly drop in four months and fell 0.5 per cent today as US fiscal fears continued to weigh on sentiment.
Despite a stellar September quarter, when the ASX gained almost 9 per cent, October has been marked by uncertainty arising from a US political stalemate.
Three days of a partial US government shutdown has unnerved investors with the threat of a government default looming on October 17. The shutdown has even cast doubt the key US monthly jobs report will be released on time, as it is due this evening.
As doubts surround the imminent deadline to raise the US debt ceiling all local sectors sank into the red by close.
Figures
The S&P/ASX 200 index lost 27 points today, extending the weekly fall of 99 points finish at 5,208.
The value of trades was $3.2 billion on volume of 521 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 Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 30 points lower.
Wall Street
US stocks have lost ground over the four trading days this week: The Dow Jones Industrial Average has lost 332 points, the S&P 500 Index has lost 20 points, the Nasdaq has lost 13 points and the 100 Index has lost 20 points.
Economic news
Confidence among mid-market Australian businesses has more than doubled in the past three months, rebounding from a period of depressed sentiment prior to the Federal Election. Commonwealth Bank of Australia Limited's
(ASX:CBA) Future Business Index is based on a survey of financial decision markers in public and private companies with annual turnover of between $10 million and $100 million. The index found business confidence jumped to 10.8 in the September quarter from 5.2 in the prior quarter.
Company news
Shares in Leighton Holdings Limited
(ASX:LEI) continued to slide one day after the construction giant was forced to defend media allegations of multi-million dollar corruption and cover-ups. As analysts mull the fall out more claims today surfaced against the company’s past executives and directors including former CEO Wal King. Responding to the reports yesterday Leighton Holdings told the market it was “deeply concerned” about the suggestions of impropriety. Shares in Leighton Holdings fell 4.56 per cent today, ending the week at $16.74.
Oil Search Limited
(ASX:OSH) says its project partner has secured more finance for their $US19 billion Papua New Guinea liquefied natural gas (PNG LNG) venture. The energy producer says its co-venturer Exxon Mobil has raised $US1.5 billion of project financing. The PNG LNG Project remains on track to deliver LNG in the second half of 2014. Shares in Oil Search eased 0.71 per cent today, ending the week at $8.39.
Shares in Sunland Group Limited
(ASX:SDG) rose 0.86 per cent after telling the market it has abandoned a High Court bid but will face legal costs of up to $7 million. The property developer last month lost an appeal to claim damages from two Australian businessmen embroiled in a $63 million waterfront property transaction in Dubai.
Shares in Clean Seas Tuna Limited
(ASX:CSS) plunged 42.03 per cent today after exiting a trading halt and announcing plans to raise up to $6 million. The South Australian based fish farmer will ask existing shareholders to participate in a share purchase plan to fund increased production of Yellowtail Kingfish.
Best and worst performers
Across the sectors all finished in negative territory: The sector with the smallest losses was real estate investment trusts easing 4 points to close at 1,029. The worst performing sector was materials, losing 79 points to close at 9,575 points.
The best performing stock in the S&PASX 200 was Mount Gibson Iron Limited
(ASX:MGX), rising 4.96 per cent to close at $0.74. Shares in Bradken Limited
(ASX:BKN) and Skilled Group Limited
(ASX:SKE) also closed higher.
The worst performing stock was NRW Holdings Limited
(ASX:NWH), dropping 7.82 per cent to close at $1.35. Shares in Paladin Energy Limited
(ASX:PDN) and Leighton Holdings Limited
(ASX:LEI) also closed lower.
Commodities
Gold is trading at $US1,320 an ounce, down $7.20 over the week.
Light crude is $0.79 lower at $US103.31 a barrel.
The Australian dollar
The Australian dollar is buying 94.49 US cents, up $0.0082 over the week.
