Market Wrap: Aus shares close 2.06% lower

Market Reports

by Clive Tompkins

The Australian share market experienced one of its worst days in four months. The S&P/ASX 200 index closed 109 points, or 2 per cent, lower to finish at 5,203.

Throughout the whole day, investors aggressively sold off shares. The Energy space was the worst performing sector due a drop in oil prices.

The value of trades was $5.6 billion on volume of 855 million shares at the close of trade. The top three stocks by value were CBA , ANZ & BHP.

On the futures market the SPI is down 58 points.

Economic news

Earlier today, NAB released its Business Survey for the month of May. NAB’s Survey indicates that overall business conditions were flat last month. However, sales and profitability continued to improve for Australian businesses in the non-mining sectors. Despite that, business confidence was slightly lower.

Company news

Sunland Group (ASX:SDG) has acquired a 2.7 hectare development site in Everton Hills for $6 million. This site is 11 kilometers north-west of the Brisbane CBD. The company says the site is earmarked for a medium-density residential development, with an estimated value of $47 million. Settlement is expected to occur in November. Shares in Sunland Group closed down 2.71% at $1.44.

Qantas Airways Ltd (ASX:QAN) has completed a $500 million on market share buy-back.

Ingenia Communities Group (ASX:INA) is set to purchase four Lifestyle Parks across NSW and Queensland for $59.2 million.

Carnegie Wave Energy (ASX:CWE) has announced that its Alliance Partner, Energy Made Clean, has finished building a new Battery Energy Storage System in New Zealand.

Best and worst performers

The best performing sector was Utilities losing 0.6 per cent to close at 7,292. The worst performing sector was Energy, losing 3.9 per cent to close at 8,099 points.

The best performing stock in the S&P/ASX 200 was Independence Group, rising 4.89 per cent to close at $3.43. Shares in Metcash and Regis Resources also closed higher.

The worst performing stock was Mesoblast, dropping 42.19 per cent to close at $1.11. Shares in Liquefied Natural Gas and Beach Energy also closed lower.


Gold is trading at $US1,279 an ounce.
Light crude is $0.20 down at $US49.52 a barrel.
The Australian dollar is buying $US0.7398.

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