The Australian share market closed at the days low’s on the back of falls in health stocks, the big banks and Qantas, which shocked the market on the back of a profit warning. The local bourse fell below 5,200 for the first time since Mid-October, with today’s losses wiping about $20 billion off the markets value. The Australian dollar had a rollercoaster day itself, crashing below 90 US cents on US Fed tapering fears and Aussie trade data, however recovered somewhat in afternoon trade.
The S&P/ASX 200 index closed 76 points down to finish at 5,198. The value of trades was $5.8 billion on volume of 1.1 billion 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 67 points down.
Economic news
The Australian Bureau of Statistics has released the October trade balance data, indicating that the nation’s trade deficit has widened to a seasonally adjusted $529 million for October, after hitting $271 million in September. Exports declined by 1 per cent to $27.27 billion while imports rose by 1 per cent to $27.80 billion.
Company news
The Australian Competition and Consumer Commission wants to look more closely at BlueScope Steel’s Limited
(ASX:BSL) planned purchase of Hills processing units Fielders and Orrcon. ACCC Chairman Rod Sims says the competition watchdog’s preliminary view is that the proposed acquisition may raise competition concerns in relation to BlueScope’s supply of steel coil inputs to rival downstream roll formers. Shares in BlueScope closed 0.55 per cent up at $5.45.
Worleyparsons Limited
(ASX:WOR) has been awarded a $70 million contract by a subsidiary of Russian based global natural gas extractor Gazprom. The contract is for the development of a major Russian LNG production and export facility, a major boost to Gazprom’s supply to key Asia-Pacific markets and customers. Shares in Worleyparsons closed 2.3 per cent down at $16.12.
Qantas Airways Limited
(ASX:QAN) shares sank 11.2 per cent on the back of an alarming profit update. Alongside tipping a half year loss of between $250 and $200 million, the carrier also flagged 1000 job losses and executive pay cuts, after spending the past fortnight imploring the federal government for assistance.
Nufarm Limited
(ASX:NUF) shares fell 7.56 per cent despite the crop protection company telling shareholders it is expecting a lift in its half year net profit on the back of strong performance from its Brazil operations.
Warrnambool Cheese & Butter Factory Co
(ASX:WCB) is advising shareholders to take no action in relation to their shares until directors have reviewed a revised bid from Murray Goulburn Co-Operative.
Westfield Group
(ASX:WDC) will buy the remaining 50 per cent interest in the World Trade Center retail premises in New York for $US800 million.
Best and worst performers
All major sectors closed lower. The sector with the fewest losses was Materials, falling 13 points to close at 9,824.
The worst performing sector was Healthcare, losing 165 points to close at 13,956.
The best performing stock in the S&PASX 200 was PanAust Limited
(ASX:PNA), rising 9.31 per cent to close at $1.58. Shares in Lynas Corporation Limited
(ASX:LYC) and Alacer Gold Corp - CDI
(ASX:AQG) also closed higher.
The worst performing stock was Qantas Airways Limited
(ASX:QAN), dropping 11.2 per cent to close at $1.07. Shares in Forge Group Limited
(ASX:FGE) and Nufarm Limited
(ASX:NUF) also closed lower.
IPOs Veda Group Limited
(ASX:VED) started trading today. The credit reporting company floated with an issue price of $1.25, opened at $1.74, soaring over 40 per cent from its issue before closing at $1.75.
Lifehealthcare Group Limited
(ASX:LHC) also commenced trading today. The medical device distributor floated with an issue price of $2.00, opened at $2.08 before closing at $2.01.
Commodities
Gold is trading at $US1,240 an ounce. Light crude is $1.16 up at $US97.20 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9037.
