Following its biggest weekly drop this year Australia’s benchmark index looks to fall into the new week in the wake of heavy falls on global markets and with a series of companies trading ex-dividend today.
Wall Street ended Friday lower ahead of Crimea’s referendum to break away from Ukraine and become independent or join Russia – with votes now being counted. Over last week America’s major indexes sank 2 per cent while Japan’s Nikkei dropped 6 per cent and Russia’s benchmark index plummeted 7 per cent.
Looking ahead central banks will be in focus this week with Australia’s Reserve Bank releasing its monthly board meeting minutes tomorrow. The US Federal Reserve’s policy meeting on Wednesday is expected to reveal more economic stimulus scale-back following February’s better than expected jobs report.
Global markets
Wall Street fell on Friday as concerns rose over tensions between Ukraine and Russia: The Dow Jones Industrial Average fell 43 points to close at 16,066, the S&P 500 fell 5 points to close at 1,841 and the NASDAQ fell 15 points to close at 4,245.
European markets closed mixed at the end of last week: London's FTSE 100 Index dropped 26 points, France's CAC 40 dropped 34 points but Germany's DAX rose 39 points.
Asian markets ended Friday steeply lower: Japan’s Nikkei retreated 488 points, Hong Kong’s Hang Seng tumbled 217 points, and China’s Shanghai Composite declined 15 points.
The Australian share market plunged 1.5 per cent on Friday and notched a decline of 2.4 per cent over last week: The S&P/ASX 200 Index sank 83 points on Friday to extend the weekly drop of 133 points and close at 5,329. On the futures market the SPI is 18 points lower.
Currencies
The Australian dollar lost $US0.01 over last week and has slipped further under $US0.90 today. At 7:20am The Aussie was buying $US0.8999, 54.1 Pence Sterling, 91.14 Yen and 64.73 Euro cents.
Economic news due out today
Australian Bureau of Statistics: New motor vehicle sales figures for February
Company news
Attention will remain on Australia’s mining sector after the major miners were sold off last week. Diversified mining giants BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO) shed more than 5 per cent over the week. Pilbara focussed iron ore miner Fortescue Metals Group Limited
(ASX:FMG) sank 8.3 per cent after the price of the steel making commodity sank under $US105 per tonne. Concerns over future demand from China also impacted the copper price which dropped more than 5 per cent over the week. Shares in BHP Billiton fell 2.03 per cent on Friday to end the week at $35.66.
Lynas Corporation Limited
(ASX:LYC) lost ground last week after widening its first half loss and flagging the need for potential funding. The rare earths producer’s stock nudged five-year lows after reporting a first half net loss of $59.3 million. Concerns over the miner’s financial position were stoked by the company claiming it may seek more funding over the following year. After plunging more than 20 per cent over the week shares in Lynas Corporation ended Friday steady at $0.24.
Commodities
After gaining almost $US20 over last week the price of gold has continued to climb $13.90 to $US1,379 an ounce for the April contract on Comex.
Silver has added $0.21 to $21.41 for May.
Copper has lost $0.01 to $2.95 a pound.
Oil has gained $0.69 to $US98.89 a barrel for April light crude in New York.
Ex-dividends
Amcom Telecommunications Limited
(ASX:AMM) paying a 2.2 cent fully franked dividend
Ausdrill Limited
(ASX:ASL) paying a 2.5 cent fully franked dividend
Blackwall Property
(ASX:BWF) paying a 1.2 cent fully franked dividend
Cardno Limited
(ASX:CDD) paying a 19 cent fully franked dividend
Cryosite Limited
(ASX:CTE) paying a 0.5
cent unfranked dividend
Embelton Limited
(ASX:EMB) paying a 13 cent fully franked dividend
Envestra Limited
(ASX:ENV) paying a 3.2 cent unfranked dividend
Fantastic Holdings
(ASX:FAN) paying a 3 cent fully franked dividend
Flagship Investments
(ASX:FSI) paying a 3.25 cent fully franked dividend
Bentham IMF Limited
(ASX:IMF) paying a 5 cent fully franked dividend
James Hardie Industries
(ASX:JHX) paying a 31.3199 cent unfranked dividend
Leighton Holdings
(ASX:LEI) paying a 60 cent 50 per cent franked dividend
Legend Corporation
(ASX:LGD) paying a 0.75 fully franked dividend
Macquarie Atlas Roads Group
(ASX:MQA) paying a 5 cent unfranked dividend
New Zealand Oil& Gas
(ASX:NZO) paying a
2.4066 cent unfranked divided
Primary Health Care
(ASX:PRY) paying a 9 cent fully franked dividend
Retail Food Group
(ASX:RFG) paying a 10.75 cent fully franked dividend
Steadfast Group Limited
(ASX:SDF) paying a 1.8 cent fully franked dividend
Skycity Entertainment Group Limited
(ASX:SKC) paying a 7.8348 cent fully franked dividend
Structural Systems
(ASX:STS) paying a 2.5 cent fully franked dividend
Telecom Corporation
(ASX:TEL) paying a 9.0588 cent unfranked dividend
Vita Life Sciences
(ASX:VSC) paying a 2 cent unfranked dividend
Watermark Fund Limited
(ASX:WMK) paying a 2.5 cent fully franked dividend
Woolworths Limited
(ASX:WOW) paying a 65 cent fully franked dividend
