Sydney, Aug 17, 2007 (ABN Newswire) - The share market fell again today but losses weren't nearly as heavy as what we experienced earlier in the week. Trading continues to be volatile though, analysts saying that equity markets are in for a bumpy ride over the short term as the likelihood of further casualties from the global credit crunch continues to rise.
Today the S&P/ASX 200 Index closed down 41 points to 5671, and is down 265 points on the week. On the futures market the SPI 200 lost 115 points.
Looking to US indices now, the Dow Jones industrial Index plunged 394 points over the four day trading week. The S&P 500 slipped 42 points lower, the NASDAQ lost 94, and the 100 index shed 79 points.
Turning to company news now, Primary Healthcare has increased its stake in takeover target Symbion Health. The health services provider raised its stake to just under 19 per cent. This latest purchase moves the company closer to the level that would trigger a full takeover bid. Symbion has already agreed to be taken over by a consortium led by rival hospital operator Healthscope. Shares in Primary Healthcare ended the session 2.06% lower at $10.94, losing 8.07% on the week.
Shares in Evans and Tate have been placed on a trading halt. The winemaker has been the focus of takeover activity in the last few months with its board recently rejecting a $100 million offer from Yarraman Estates. Another bidder, Ferngrove Vineyards, withdrew its offer for Evans and Tate last month. And back in June the company announced it had reached an in principle restructuring agreement with the ANZ Bank. The securities will remain on a trading halt pending the release of an announcement by the company. Shares in Evans and Tate last traded at 13 cents.
Taking a look at some of the week's main stories now, Australia's largest airline Qantas Airways escaped much of the market turmoil after announcing record net earnings of $720 million. But despite the good news, chief executive Geoff Dixon spent much of his time defending the failed takeover of the airline earlier this year. Mr Dixon simply said such talk was irrelevant and the airline had now moved on from the APA debacle. He also commented the airline was embarrassed to be implicated in a U.S. investigation into price fixing in the air freight market. The carrier also announced this week plans to buy back up to 10 per cent of its issued capital. The $1.05 billion buyback will help the company return funds back to shareholders as part of the company's restructuring plans. The buyback will Qantas's first since it listed in 1995. Shares in Qantas Airways ended the session steady at $5.30, and are down 1.67% on the week.
And shares in the newly listed RAMS Home Loans Group tumbled after the company issued a debt market volatility impact statement. The company assured investors it didn't have any sub-prime exposure, and that its mortgages were 100 per cent insured, but the company did say that if the current volatility continues, it will likely have a negative financial impact on RAMS in 2008. And as the week progressed Shares in RAMS slumped further after it announced it had extended the refinancing period for billion of dollars in maturing notes due to a lack of market liquidity. Shares in RAMS Home Loans ended the session 2.89% higher to close at 89 cents, and are down 49.72% on the week.
And finally Bass Metal's exploration has produced the strongest indication to date for the potential delineation of a major new base metals ore body in the Hellyer area. The Hellyer targets were generated in association with Clancy's major shareholder and former parent company Geo-Informatics Exploration. Clancy Exploration which recently listed on the Australian Stock Exchange has a shareholding in Bass Metals which currently comprises over 900 thousand shares.
And now to today's best and worst performers. One of the best performing indices was the Financial Ex Property Trust Price index gaining 19 points to 6716, while the worst performing index was the Materials index slipping 258 points to 11,671.
Macquarie Infrastructure was the standout performer in the S&P/ASX top 200 today adding 5.3% to $3.18; Babcock and Brown Japan Property Trust and Resmed also managed to gain ground.
At the other end of the index; APA Group was the worst performing stock losing 10.6% to $3.71; Compass Resources and Mincor Resources also finished lower
The full report is available at the following video and audio links.
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