CBA sell-off: Aus shares close 0.25% lower

Market Reports

by Carolyn Herbert

It has been a negative finish to the trading week for the Australian share market, opening in the red and remaining underwater for the rest of the session, closing the day 0.25 per cent lower. The Financials space proved to be the biggest drag on the market, after CBA was sold off by close to 4 per cent due to fresh allegations the bank failed to comply with anti-money laundering laws. However, Industrials and Health Care had a solid trading day both closing around 0.7 per cent higher.

At the closing bell the S&P/ASX 200 index closed 15 points down to finish at 5,721.

The value of trades was $5.4 billion on volume of 699 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), Rio Tinto Limited (ASX:RIO) and BHP Billiton Limited (ASX:BHP).

On the futures market the SPI is 10 points down.

Asian markets 

Taking a look at how Asian markets are tracking in afternoon trade. The Nikkei is 0.39 per cent lower, Hong Kong’s Hang Seng is practically flat and the Shanghai Composite is 0.32 per cent higher.

US markets

Looking at Wall Street, US major indexes were mixed over the four trading days this week: The Dow Jones Industrial Average has added 0.89 per cent. The S&P 500 Index is flat. The NASDAQ has lost 0.54 per cent. The 100 Index has lost 0.3 per cent.

Economic news

The Reserve Bank of Australia has released its Statement of Monetary Policy downgrading its growth forecasts for the Australian economy. The central bank says it forecasts growth in December of 2 to 3 per cent, a slight decrease from the 2.5 to 3.5 per cent in the previous forecast in May.

Company news

CIMIC Group Limited (ASX:CIM) says its company CPB Contractors has been selected by the Department of Transport and Main Roads to deliver Stage 1 of the $497.3 million Mackay Ring road project in Queensland. The construct only contract will generate revenue to CPB contractors of around $215 million. Stage 1 construction is expected to commence in mid-2017and be completed by June 2019. Shares in CIMIC Group (ASX:CIM) closed 1.1 per cent up at $42.35.

OrotonGroup (ASX:ORL) has announced it will discontinue the Gap franchise business in Australia, with store closures targeted for 31 January 2018.

Crown Resorts Limited (ASX:CWN) has announced its reported NPAT attributable to its parent rose 96.7 per cent, after significant items, to $1.866 billion in FY17.

Tatts Group (ASX:TTS) has advised that the proposed merger with Tabcorp (ASX:TAH) will be voted on by its shareholders in October 2017.

Best and worst performers

The best performing sector was Industrials adding 0.76 per cent to close at 5,673. The worst performing sector was Financials excluding REITs, losing 1.07 per cent to close at 7,218 points.

The best performing stock in the S&P/ASX 200 was Webjet (ASX:WEB), rising 10.4 per cent to close at $12.08. Shares in Galaxy Resources (ASX:GXY) and Navitas (ASX:NVT) also closed higher.

The worst performing stock was Sims Metal Management (ASX:SGM), dropping 12.47 per cent to close at $13.41. Shares in Mayne Pharma (ASX:MYX) and Commonwealth Bank (ASX:CBA) also closed lower.

Commodities and the dollar

Gold is trading at $US1,269 an ounce.
Light crude is $0.66 lower at $US48.93 a barrel.
The Australian dollar is buying $US0.7967.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.