The SPI is pointing to weak start for the Australian share market after Wall Street saw a muted end to Friday’s session after hitting fresh records on Thursday. On Friday US traders welcomed the debut of Alibaba Group Holding Limited (NYSE:BABA) on the New York Stock Exchange. The Chinese e-commerce giant spiked 38 per cent by close to put a market capitalisation on the company of more than $231 billion.
Across currency markets the Australian dollar has continued to fall against the US dollar on the back of a 1.6 per cent drop in the ron ore price. Closer to home the economic calendar will be light this week but attention will turn to the Reserve Bank of Australia’s (RBA) Financial Stability Review due for release on Wednesday.
Global markets
Wall Street jumped 1.3 per cent over last week but finished Friday softly: The Dow Jones Industrial Average added 0.08 per cent to close at 17,280, the S&P 500 slipped 0.05 per cent to close at 2,010 and the Nasdaq dipped 0.3 per cent to close at 4,580.
European markets moved 0.9 per cent higher over the week but finished mixed on Friday: London's FTSE 100 rose 0.3 per cent, France's CAC 40 eased 0.08 per cent and Germany's DAX firmed 0.01 per cent.
Asian markets put in a mixed performance over the week but advanced on Friday: Japan’s Nikkei rallied 1.6 per cent, Hong Kong’s Hang Seng increased 0.6 per cent, and China’s Shanghai Composite rose 0.6 per cent.
The Australian share market retreated 1.8 per cent over last week to post its fourth straight week of losses: the S&P/ASX 200 index lifted 17 points on Friday, trimming the weekly loss of 98 points to end at 5,433. On the futures market the SPI is 18 points lower.
Currencies
The Australian dollar continued to decline last week against the greenback and at 7:30am was buying $US0.8933, 54.78 Pence Sterling, 97.46 Yen and 69.66 Euro cents.
Company news
Shares in National Australia Bank Limited
(ASX:NAB) got a boost from Scotland’s decision to stay with the United Kingdom at the end of last week. The bank had earlier warned of the uncertainties and risks surrounding terms of separation if Scotland were to become an independent country. Should Scotland have voted for independence NAB’s contingency plan involved registering its Glasgow-based subsidiary Clydesdale Bank as an English company. Shares in National Australia Bank gained 2.08 per cent on Friday to end the week at $33.90.
Shares in AWE Limited
(ASX:AWE) climbed almost 15 per cent over the week to the benchmark index's best performer after announcing a significant gas discovery in the north Perth Basin. The oil and gas explorer says the discovery is potentially the largest conventional onshore gas discovery in Western Australia since the 1960s. Mining and materials company Arrium Limited
(ASX:ARI) plunged more than 40 per cent over the week to the worst performer after finishing the institutional part capital raising. Shares in AWE gained 3.14 per cent on Friday to end the week at $1.97.
Ex-dividends today
IOOF Holdings Limited
(ASX:IFL) paying a 25 cent fully franked dividend
MACA Limited
(ASX:MLD) paying a 25 cent fully franked dividend
Macquarie Atlas Roads Limited
(ASX:MQA) paying a 8.2 cent unfranked dividend
Ex-dividends tomorrow
Alliance Aviation Limited
(ASX:AQZ) paying a 2.1 cent fully franked dividend
Dicker Data Limited
(ASX:DDR) paying a 1.85 cent fully franked dividend
Commodities
Gold has dropped $10.30 to $US1,216.60 an ounce for the December contract on Comex.
Silver has fallen $0.67 to $17.84 for December.
Copper has dipped $0.004 to $3.09 a pound.
Oil has pulled back $0.66 to $US92.41 a barrel for October light crude in New York.
