Sydney, Sept 18, 2007 (ABN Newswire) -
The share market fell further into the red today. The National Australia Bank led the market down along with other financial firms on growing credit market concerns. Softer base metal prices also weighed on the miners.
The S&P/ASX 200 Index closed down 79 points to 6193, and on the futures market the SPI 200 lost 20 points.
In economic news, business confidence is at its highest level in three years. The Australian Chamber of Commerce and Industry-Westpac survey of industrial trends for the September quarter showed its composite index at 56.4 the highest level since 2004. It comes despite the Reserve Bank lifting its cash rate target to an 11 year high in August.
The full report is available at the following video and audio links.
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http://abnnewswire.net/lnk/PWIB0874Turning to company news now, analysts have warned the Coles Group's results may fall below expectations. At its half-year results briefing, Coles chairman Rick Allert told shareholders that the retailer was on track to deliver a $787 million net profit for fiscal 2007. Credit Suisse analyst Andrew McLennan, however, says earnings good come in as low as $755 million. And analysts at Goldman Sachs have warned earnings may sink as low as $719.9 million after one-off items are excluded. Shares in the Coles Group closed 0.47% lower at $14.85.
And the competition watchdog has given Fairfax the green light to absorb the Riverina Media Group. The ACCC investigated the potential for aggregation of agricultural publications in the greater Riverina southern NSW area. The Commission concluded the acquisition was unlikely to substantially lessen competition under section 50 of the Trade Practices Act. Rural Press bought a stake in the Riverina Media Group back in May, a short time before Fairfax swallowed Rural Press in a $2.7 billion merger. Shares in the Fairfax Media closed down 0.22% to $4.42.
In other news today, MFS Diversified announced it sold two industrial properties in Queensland for just over $20 million. The company is prospering on the back of the flourishing Brisbane industrial market.
Analysts say the National Australia Bank and ANZ Bank are now more likely to raise interest rates on their mortgages as a result of the global credit crunch.
Global Nickel Investments has made a strong debut on the stock exchange. The nickel and gold exploration company opened at 25 cents that's a 25 per cent premium to its issue price of 20 cents. The stock closed the session at 24 cents.
And according to sources close to the deal, healthcare firms Symbion Health and Healthscope are planning to extend their tie-up talks as they continue to search for alternatives to their failed $2.9 billion takeover deal.
Now to today's best and worst performers, well all the major indices were down today. The index which fell the least amount was the Healthcare index off 8 points to 9173, while the worst performing index was the Property index shedding 52 points to 2397.
Sino Gold Mining was the best performer in the S&P/ASX top 200 climbing 7.2% to $6.25; AWB and Newcrest Mining were also in favour today.
Adelaide Bank was the worst performing stock today sliding 6.99% to $13.71; Bradken and MFS Limited also retreated.
To commodities now, gold is currently trading at $716.60 US an ounce and light crude is 56 cents firmer at $81.13 US a barrel.
Source: Finance News Network © 2007
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