The Australian share market closed at session lows amid ongoing concerns about the US Federal Reserves seemingly imminent tapering of stimulus measures, accelerating its descent in afternoon trade as all the major sectors finished in negative territory. Local stocks saw their biggest daily losses since the end of September, with the major banks all falling heavily and the energy sector leading the way down. Gold and the Aussie dollar also fell on US tapering concerns.
The S&P/ASX 200 index closed 74 points down to finish at 5,319. The value of trades was $4.6 billion on volume of 846 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), BHP Billiton Limited
(ASX:BHP) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 77 points down.
Economic news
The Westpac Melbourne Institute Survey of Consumer Sentiment has been released, revealing that consumer confidence has been boosted by a strengthening housing market and continued to lift after the federal election. The index rose by 1.9 per cent in November after a dip in October, returning to 2010 levels.
Company news
Leighton Holdings Limited
(ASX:LEI) has maintained its full-year underlying profit guidance after posting a strong lift in its third quarter profit.
The construction giant posted a net profit after tax of $444 million for the nine months to the end of September, a 40 per cent increase on the $317 million in the previous corresponding period. Chief Hamish Tyrwhitt also went on the offensive, blaming a media campaign against the company, regarding unpaid bills in the Middle East, for falsely tarnishing its reputation and damaging its financial position. Shares in Leighton closed 3.23 per cent down at $17.05.
Westpac Banking Corp
(ASX:WBC) didn’t increase fixed remuneration or incentive targets for its senior executives in 2013, however says it has rewarded high performers across its business who helped deliver strong financial results. In its annual report, Westpac said CEO Gail Kelly's total remuneration was $9.2 million in fiscal 2013, including fixed remuneration, short-term incentives, superannuation and share-based payments. Shares in Westpac closed 1.77 per cent down at $32.27.
The battle for Warrnambool Cheese & Butter Factory Co
(ASX:WCB) has heated up to a $505 million tussle as one of its three suitors, Murray Goulburn, raised its bid., sending WCB shares up 6.56 per cent.
Webjet Limited
(ASX:WEB) shares slumped 5.25 per cent after the travel retailer forecast flat pre-tax earnings in the full year due to larger marketing and technology costs.
Fortescue Metals Group Limited
(ASX:FMG) shares gained 2.85 per cent after the iron ore giant moved early to repay $1 billion worth of senior unsecured notes, part of a larger $US2.04 billion package due in 2015.
DuluxGroup Limited
(ASX:DLX) shares fell 1.72 per cent after the paint maker posted a 14 per cent fall in its full year net profit of $76.9 million, owing to acquisition and impairment costs.
Best and worst performers
The sector with the fewest losses was Telco services falling 11 points to close at 1,766.
The worst performing sector was Energy, losing 242 points to close at 13,774.
The best performing stock in the S&PASX 200 was Sundance Resources Limited
(ASX:SDL), rising 9.09 per cent to close at $0.12. Shares in CSR Limited
(ASX:CSR) and Boart Longyear Limited
(ASX:BLY) also closed higher.
The worst performing stock was Linc Energy Limited
(ASX:LNC), dropping 7.89 per cent to close at $1.05. Shares in PanAust Limited
(ASX:PNA) and Lynas Corporation Limited
(ASX:LYC) also closed lower.
Commodities
Gold is trading at $US1,270.53 an ounce. Light crude is $2.10 down at $US93.04 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9304.
