Local stocks have ended in the red for the third consecutive session, with the Australian share market closing 0.8 per cent down. Energy stocks were the biggest draggers, led on their descent by mining services giant Worleyparsons, which crashed to the days worst performing stock on the back of a full year profit downgrade and sent the energy sector down 2.7 per cent. Utilities was the only major sector to finish ahead.
The S&P/ASX 200 index closed 45 points down to finish at 5,308. The value of trades was $4.3 billion on volume of 752 million shares at the close of trade. The top three stocks by value were Westpac Banking Corporation
(ASX:WBC), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 49 points down.
Economic news
The pace of economic activity is set to pick up, according to the Westpac-Melbourne Institute Leading Index for October. The index rose 1.2 per cent in the month, compared with 0.6 per cent in September. Westpac chief economist Bill Evans says recent above-trend growth in the Index is pointing to a much better outcome over the next few quarters.
Company news
Leighton Holdings Limited
(ASX:LEI) subsidiary Thiess has been granted a $550 million contract expansion at the Lake Vermont coal mine in Central Queensland. Leighton says Thiess will provide engineering and operations expertise to increase coal production at the mine, operated by privately owned company Jellinbah Group, from six million tonnes to eight million tonnes per year. Shares in Leighton closed 2.22 per cent down at $16.32.
Monadelphous Group Limited
(ASX:MND) shares may be in for an even bigger drop than they’ve already suffered in the past two sessions, after broker JP Morgan told clients they were worth $14.95, despite currently sitting notably higher. JP told clients that Monadelphous will find it difficult to defy the headwinds from Australian resources and energy customers delaying/cancelling project work and seeking ways to cut costs. Shares in Monadelphous closed 5.34 per cent down at $17.01.
Worleyparsons Limited
(ASX:WOR) shares tanked 25.89 per cent after it issued a full year profit warning, expecting underlying full year profit to come in between $260 and $300 million, having earlier issued post tax guidance of $322 million.
Warrnambool Cheese & Butter Factory Co
(ASX:WCB) says if its shareholders accept Canadian suitor Saputo’s takeover offer they will receive $9 cash per share within five business days of the bid being declared unconditional.
Kathmandu Holdings Limited
(ASX:KMD) shares fell 2.65 per cent after the retailer warned conditions in Australia remain challenging for discretionary retail, however said it is well placed to deal with the environment.
Soon to be renamed FKP Property Group
(ASX:FKP) shares rose 2.48 per cent after it said continuing strong residential sales benefitting its Residential Communities and Apartment division are aiding its progress to becoming a pure retirement group.
Best and worst performers
The best performing sector was Utilities adding 11 points to close at 5,421.
The worst performing sector was Energy, losing 367 points to close at 13,325.
The best performing stock in the S&PASX 200 was Drillsearch Energy Limited
(ASX:DLS), rising 4.84 per cent to close at $1.30. Shares in St. Barbara Limited
(ASX:SBM) and Perseus Mining Limited
(ASX:PRU) also closed higher.
The worst performing stock was Worleyparsons Limited
(ASX:WOR), dropping 25.89 per cent to close at $16.00. Shares in SMS Management & Technology Limited
(ASX:SMX) and Monadelphous Group Limited
(ASX:MND) also closed lower.
Commodities
Gold is trading at $US1,275 an ounce. Light crude is $0.31 up at $US93.34 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9399.
