Down for the week and down for a day in which the Australian share market recovered from a six-day low. Stocks sank more than 1 per cent at open following steep falls on overseas markets amid fears America’s stimulus program is set to wind back. Hopes China will ease the increasing liquidity squeeze supported the local bourse as the session advanced. The miners managed to claw out from the red to end 0.3 per cent higher but the gold sector struggled, shedding 4 per cent. Gains in energy and industrial sectors were offset by weakness among the banks.
Figures
The S&P/ASX 200 index lost 20 points, extending the weekly fall of 53 points to end the trading week at 4,739.
The value of trades was $5.9 billion on volume of 1.2 billion 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 22 points lower.
Wall Street
US indices have plunged over the four trading days this week: The Dow Jones Industrial Average has retreated 418 points, the S&P 500 Index has fallen 48 points, the Nasdaq has dropped 81 points and the 100 Index has lost 73 points.
Economic news
Australia’s liquefied natural gas projects could be struck with more delays due to rising costs and intense competition, according to The International Energy Agency. The energy watchdog’s medium-term gas market report for this year also cut expectations for global gas demand to a rate of 2.4 per cent annual growth to 2018, down from a previous estimate of 2.7 per cent and down from the expected 2.6 per cent annual rate for coal demand.
Company news BHP Billiton Limited
(ASX:BHP) has sold a stake in a West Australian iron ore mine to two Japanese conglomerates. Under the deal ITOCHU and Mitsui will invest a total of $US1.5 billion for a 15 per cent interest in the global mining company’s Jimblebar mine in the Pilbara region. While regulators are yet to approve the transaction BHP says the deal will drive simplicity and flexibility. Shares in BHP Billiton firmed 0.93 per cent today, ending the week at $32.45.
Rio Tinto Limited’s
(ASX:RIO) production timeline in Mongolia has been dealt a blow after the government delayed launching its Oyu Tolgoi copper and gold mine. The mining giant had expected to start shipping from the $6.2 billion operation today but plans have been postponed at the government’s request. Rio Tinto is holding on for the government’s green light and says it is keen to start shipping as soon as possible. Shares in Rio Tinto added 0.11 per cent today to finish the week at $52.66.
Shares in Newcrest Mining Limited
(ASX:NCM) dropped almost 4 per cent as Australia’s largest gold miner sank under the weight of a plunging gold price. Newcrest has also been plagued by calls for the company’s chairman to step down amid disclosure investigations and operational hurdles.
Shares in Arafura Resources Limited
(ASX:ARU) retreated almost 9 per cent after the rare earths explorer terminated a land purchase deal in South Australia as part of its plans to target $400 million in cost savings. Arafura had planned to buy the land from Arrium Limited
(ASX:ARI) to build a processing plant but will now move the proposed site to the Northern Territory.
Best and worst performers
The best performing sector was energy adding 120 points to close at 12,795.
The worst performing sector was real estate investment trusts, losing 14 points to close at 1,009 points.
The best performing stock in the S&PASX 200 was Decmil Group Limited
(ASX:DCG), rising 10 per cent to close at $1.76. Shares in Senex Energy Limited
(ASX:SXY) and Whitehaven Coal Limited
(ASX:WHC) also closed higher.
The worst performing stock was Silver Lake Resources Limited
(ASX:SLR), dropping 17.07 per cent to close at $0.68. Shares in Coalspur Mines Limited
(ASX:CPL) and St. Barbara Limited
(ASX:SBM) also closed lower.
Commodities
Gold is trading at at $US1,296 an ounce, down $88.30 over the week.
Light crude is $0.36 higher at $US95.50 a barrel.
The Australian dollar
The Australian dollar is buying 92.47 US cents, down $0.033 over the week.
