The Australian share market traded solidly in the red today and despite a couple of bumps in the chart the local bourse finished 0.7 per cent lower.
The continuing iron ore price woes were confirmed today as the government’s resources forecasting unit cut its price forecast.
Also today the RBA release its Financial Stability Review which focused on the potential dangers of growing household credit levels.
The S&P/ASX 200 index closed 40 points down to finish at 5,376.
The value of trades was $4.48 billion on volume of 706 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 32 points down.
Economic news
The Bureau of Resources and Energy Economics (BREE) has lowered its forecast for the iron ore price citing a glut of supply and lowering Chinese demand as driving the contraction through this year and next year.
Company news
Shares in New Zealand-based Fletcher Building Limited
(ASX:FBU) have sunk more than 2 per cent as they flagged 108 job losses and announce a financial hit as a result of exiting its copper tube manufacturing business in Australia.
The building and manufacturing supplier says the decision will include the closure of the Crane Copper Tube site in Penrith. Fletcher Building closed 2.56 per cent down at $7.98
BHP Billiton Limited
(ASX:BHP) also saw losses today after announcing it’s putting an axe to costs and set to cut about 700 workers from its Queensland metallurgical coal mining business.
The jobs represent about 7 per cent of the mining giant’s joint venture with Mitsubishi, the BHP Billiton Mitsubishi Alliance (BMA). Shares in BHP Billiton closed 0.74 per cent down at $34.69.
Telstra Corporation Limited
(ASX:TLS) has dipped slightly today as it announced an investment in eSignature company DocuSign.
Insurance company QBE Insurance Group Limited
(ASX:QBE) has revealed new board appointments and retirements.
Folkestone Limited
(ASX:FLK) has entered a 50:50 joint venture with Wilmac Properties to develop Stage 2 of its Millers Junction Project in Victoria.
Property developer Lend Lease Group
(ASX:LLC) is set to launch The Yards in Brisbane this weekend.
Best and worst performers
The best performing sector was health care adding 0.03 per cent to close at 15,376. The worst performing sector was utilities, losing 1.4 per cent to close at 5,816 points.
The best performing stock in the S&P/ASX 200 was Nufarm Limited
(ASX:NUF), rising 4.65 per cent to close at $4.73. Shares in Bradken Limited
(ASX:BKN) and Kathmandu Holdings Limited
(ASX:KMD) also closed higher.
The worst performing stock was Sirius Resources
(ASX:SIR), dropping 14.79 per cent to close at $3.11. Shares in Senex Energy Limited
(ASX:SXY) and Seven Group Holdings Limited
(ASX:SVW) also closed lower.
Commodities
Gold is trading at $US1,225 an ounce.
Light crude is $0.69 up at $US91.56 a barrel.
The Australian dollar is buying $US0.8875
