Description Last Movement % Change All Ordinaries 4,368.60 -50.50 -1.14 S&P/ASX 50 4,396.80 -55.70 -1.25
Market Turnover $A 3,841,656,397.00
Oil prices reached an all time record high of $US70.80 a barrel in access trade this morning in reaction to Hurricane Katrina´s change in direction towards US oil operations in the Gulf of Mexico.
Hurricane Katrina has been classed as a category 5 Hurricane, which is the most powerful classification, marking only the third of its kind in US history. Supply pressures are likely to continue until the full extent of the hurricanes damage can be seen.
The Australian share market had nowhere to go but down, with market sectors falling into the red right across the board with the exception of the energy sector.
Losses were broad based with resource, utility and property trust stocks posting the largest declines.
On the company reporting calendar John Fairfax Holdings (FXJ) turned in a weaker annual profit result compared with the previous year. For the 12 months to June 30, the media group posted a 6% fall in net profit to $259.7 million despite a 22% lift in underlying net profit due to strong advertising conditions. Earnings before interest and tax for the year were up 15.6% to $425.8 million, with second half EBIT stronger than the first six months of the financial year. Outgoing CEO Fred Hilmer advised the earnings per share growth of 19.2% over last year demonstrates the newspaper groups diversification, selective investment, business improvement and continuing cost management. There was very little forward looking statements, which is perhaps the result of Mr Hilmer wanting to hand over a clean slate to incoming CEO David Kirk. FXJ shares ended 1.1% weaker at $4.28.
Origin energy (ORG) today posted a 30% lift in annual net profit to $266 million on the back of strong performances in its oil and gas production assets. Contributions from majority owned and New Zealand based Contact energy helped offset a decline in market share in Australia. Investors were disappointed by an expected earnings forecast of 10% for 2006, and ORG shares ended the day down 2.4% at $7.36.
In economic news; Figures out today showed sales of new homes in Australia fell for the third straight month. According to the Housing Industry Association sales fell by 0.6% in July, which follows a drop of 2% in June and a 5% fall in May. Results were widely varied between the states, with NSW the hardest hit. On the other hand new home sales in QLD rose 7.5%, while South Australia experienced a 17.4% rise in sales. In some cities buyers appear to have been priced out of the market, while boom states are benefiting from the strength of mining industries.
Oil is fetching $69.75 US a barrel. Gold is trading at $438.50 US an ounce. One Australian dollar is buying 75.62 US cents (4.30pm EST).
This commentary is a general account of the day's trading and is not intended to be taken as a recommendation to buy, hold or sell any particular stock.
