Market Wrap: ASX closes 1.7% down

Market Reports

Heavy sell off’s have seen the Australian share market close sharply lower after spending the session in the red on investor fears surrounding the prospect of a US government shutdown. All the major sectors finished in the red on the last trading day of the September quarter, led down by heavy losses in Energy, Financials and Materials.   
 
The S&P/ASX 200 index closed 88 points down to finish at 5,219. The value of trades was $3.8 billion on volume of 649 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia (ASX:CBA), BHP Billiton Limited (ASX:BHP) and Westpac Banking Corporation (ASX:WBC).
 
On the futures market the SPI is 92 points down.
 
Economic news

Inflation remains soft in Australia, according to the TD Securities/Melbourne Institute Monthly Inflation Gauge, which rose 0.2 per cent in September, following a 0.1 per cent rise in August and an increase of 0.5 per cent in July. The latest read takes the yearly gauge to 2.1 per cent, and leaves inflation at the bottom end of the Reserve Bank's 2 to 3 per cent target band, giving the Central bank room to cut the cash rate further if needed.
 
The Reserve Bank of Australia says Credit growth in the private sector remained subdued in August, rising by just 0.3 per cent, below its 0.4 per cent growth in July. Credit was up 3.4 per cent in the 12 months to August.  The latest figures come despite expectations that an improved property market would spur increased borrowing levels.
 
Company news
 
Gold explorer Tribune Resources Limited (ASX:TBR) has announced a 152 per cent lift in its annual net profit of $27.7 million. The company says its inventory increased by 28 thousand ounces to 112 thousand ounces during the year, seeing it sit on $40 million worth of gold. Tribune and sister company Rand are two of the biggest holders of bullion in the southern hemisphere. Shares in Tribune Resources closed 1.45 per cent up at $2.10. 
 
Australia and New Zealand Banking Group (ASX:ANZ) CEO Mike Smith has reportedly said that Australia’s asylum seeker saga with Indonesia must be resolved to ensure it doesn’t derail trade and investment. According to various media reports, Mr Smith said the most important thing is to ensure ongoing asylum seeker issues do not supercede important trade, economic and investment issues which should be at the top of the agenda. Shares in ANZ closed 2.35 per cent down at $30.78. 
 
OZ Minerals Limited (ASX:OZL) shares jumped in early trade after a British newspaper reported that multinational miner Glencore Xstrata is considering a takeover offer. Gains diminished however after Oz released a statement to the market advising it has not been approached by Glencore in regard to any proposal. 
 
Funtastic Limited (ASX:FUN) shares climbed 6.9 per cent after the toy company announced a 34 per cent lift in its full year net profit of $13.96 million.
 
Boart Longyear Limited (ASX:BLY) shares fell 3.33 per cent despite the completion of a $US300 million secured notes offering and plans to use the proceeds to pay down loans outstanding under its revolving credit facility.
 
Nufarm Limited (ASX:NUF) chairman Donald McGauchie has urged the government to support the agribusiness sector to meet global food demand, saying the change in government would not be enough to help the sector meet its growth potential.
 
Best and worst performers

All the major sectors were lower, the sector with the fewest losses was Real estate investment trusts dropping 5 points to close at 1,019.
The worst performing sector was Energy, losing 330 points to close at 14,041.
 
The best performing stock in the S&PASX 200 was Resolute Mining Limited (ASX:RSG), rising 2.38 per cent to close at $0.65. Shares in Beadell Resources Limited (ASX:BDR) and Medusa Mining Limited (ASX:MML) also closed higher.
 
The worst performing stock was Linc Energy Limited (ASX:LNC), dropping 7.94 per cent to close at $1.45. Shares in Ausdrill Limited (ASX:ASL) and Magellan Financial Group Limited (ASX:MFG) also closed lower. 
 
Commodities

Gold is trading at $US1,339 an ounce. Light crude is $0.16 down at $US102.87 a barrel.

The Australian dollar

The Australian dollar is buying $US0.9315. 

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