News: Market Wrap: Energy shares drag ASX lower

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The Australian share market closed 1.66 per cent lower today as energy shares took another hit from fading commodity prices. BHP’s stock price has hit a 5 yr low whilst Santos has nearly halved in value during the past three months 

 

The S&P/ASX 200 index closed 90 points down to finish at 5,283. 

 

The value of trades was $5.66 billion on volume of 940 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 ANZ Banking Group (ASX:ANZ)

 

On the futures market the SPI is 105 points down.

 

Economic news

Consumer sentiment has also taken a big hit in the past week. The ANZ- Roy Morgan weekly index dipped 3.1 per cent to its lowest level in 4 months. Part of the reason can be attributed to media focus on the government’s economic management and weak GDP figures. 

 

National Australia Bank’s monthly business survey of confidence slipped from +5 to +1 while business conditions dropped from +13 to +5. This prompted the bank to forecast more interest rate cuts next year. NAB is predicting a 25 basis point cut in March with a second in August in light of the disappointing figures. 

 

Company news

 

BHP Billiton Limited (ASX:BHP) has finally revealed the company name of its proposed $17 billion de-merger. The spin-off will be called South 32. The name was chosen as the majority of South32’s selected assets are located in the southern hemisphere and its two regional centres, Australia and South Africa, are linked by the thirty-second parallel south line of latitude. Shares in BHP Billiton suffered a beating today tumbling 4.05 per cent to $28.88.

 

Cover-More Group Limited (ASX:CVO) says that it has reached an agreement with Helloworld Limited (ASX:HLO) to be its sole preferred travel insurance supplier for the Helloworld retail travel network. The agreement is for an initial term of five years starting Jan 1 next year with the launch of a new product suite to follow soon after. Shares in Cover-More Group closed 3.83 per cent down at $2.01. 

 

Origin Energy Limited (ASX:ORG) has announced a new gas discovery in the Otway Basin off the coast of Victoria.

 

Shares in Skilled Group Limited (ASX:SKE) are enjoying a lift after the company responded to a ASX price inquiry saying it had no reason for its share price plunge and it was business as usual. 

 

Transpacific Industries Group Limited (ASX:TPI, NZE:TPI) warned the grounding of its national fleet following a fatal accident in SA is likely to cost up to $20 million.  

 

And Lonestar Resources Limited (ASX:LNR) has spruiked a robust financial position while providing a moderated operational and guidance update in light of recent oil price declines. 

 

Best and worst performers

All sectors were lower today. The sector with the least losses was telco services slipping 0.6 per cent to close at 1,983. The worst performing sector was energy, shedding 4.8 per cent to close at 10,635 points.

 

The best performing stock in the S&P/ASX 200 was the aforementioned Skilled Group, rising 8.66 per cent to close at $1.38. Shares in Medusa Mining and Bradken also closed higher.

 

The worst performing stock was Senex Energy, diving 17.24 per cent to close at $0.24. Shares in Sundance Resources and BC Iron also closed lower. 

 

IPOsORG, ASX:ACX, ASX:DTI, ASX:

Two companies started trading today. Software services company Aconex Limited (ASX:ACX) listed with an issue price of $1.90, opened at $1.91 and a closed at $1.80. And technology and hardware equipment supplier DTI Group Limited (ASX:DTI) listed with an issue price of $0.30, opened at $0.35 and a closed at $0.35.   

 

Commodities

Gold is trading at $US1,201 an ounce. Light crude is $2.79 down at $US63.05 a barrel. The Australian dollar is buying 82.41 US cents.