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Share market slips on Fed rate hike talk

Monday, 29 Aug 2016 16:02:17 | Justine Parker

A man watches the information screens at the Australian Stock Exchange (ASX) as share prices fall after the market opened on August 8, 2011. (AAP: Dean Lewins)

It was a day of broad-based losses on the share market, after several US Federal Reserve officials suggested interest rates could rise again as soon as September.

Markets at 5:55pm (AEST):

  • ASX 200 -0.8pc to 5,469, All Ords -0.8pc to 5,562
  • Major gains: Austal +12.8pc to $1.32, Mesoblast +8.2pc to $1.515, APN Outdoor +5.9pc to $11.01
  • Major losses: Estia Health -16.7pc to $4.10, Evolution Mining -9.1pc to $2.17, Saracen -6.6pc to $1.405
  • Futures: Euro Stoxx 50 -20pts to 2,993, FTSE +26pts to 6,844, S&P 500 -3pt to 2,166
  • AUD: 75.43 US cents, 57.6 British pence, 77.15 Japanese yen, 67.45 euro cents, $NZ1.043

Talk of a US rate rise pushed the greenback higher, sending the Australian dollar lower, and also putting downward pressure on commodity prices, which are denominated in US dollars.

Energy stocks had many of the biggest losses as oil prices fall - Woodside lost 2.8 per cent to $28.84.

Also sold down was market darling Bellamy's, which makes organic baby food, shedding 4 per cent to $13.40.

The big four banks all lost ground - NAB fared the worst, down 1 per cent to $29.83.

Crown Resorts shares closed 1.5 per cent lower at $13.32 after James Packer cut his stake in the casino business to less than half.

Mr Packer's investment company Consolidated Press Holdings, sold a parcel of shares equivalent to around 4.8 per cent of Crown, taking its stake down to 48.2 per cent.

It said the sale is part of the company's financing and capital management strategy, but gave no further explanation.

Also struggling was Woolworths, which lost 0.8 per cent to $24.71 after Masters joint venture partner Lowe's launched Federal Court action to have an independent liquidator appointed to sell-off the assets of the failed business.

Embattled trucking and logistics firm McAleese has gone into voluntary administration after it was unable to reach a deal with its lenders.

The troubles arose after Hong Kong-based SC Lowy consortium walked away from a plan to recapitalise McAleese after the transport firm failed to get a reduction in its rents.

The first creditors' meeting is due next week.

McAleese shares have been suspended from trade on the ASX. They last traded hands at 2.5 cents a share.

To economic news, and the Housing Industry Association says record low interest rates are failing to stimulate the property sector.

HIA figures show new home sales slumped by just under 10 per cent in July, and home construction and sales are tipped to slide further over the next two years.

It said, because interest rates have been low for an extended period, their impact is wearing off.

On commodity markets oil prices dropped; Brent crude was 1.5 per cent lower at $US49.18 a barrel.

Spot gold was also weaker around $US1,318 an ounce.

AustraliaPlus


 

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