The Australian market fell hard, led by a sell down of the banks after the ANZ announced a $3 billion raising to meet stricter capital rules.
Here’s the scoreboard:
- S&P ASX 200: 5,610.10 -63.88 -1.13%
- All Ordinaries: 5,600.00 -59.48 -1.05%
- AUD/USD: 0.7338 -0.0019 -0.25%
On Wall Street, the S&P500 closed up 0.3%. On the local market nine out of ten sectors were in the red.
The financial sector as a whole was down about 1.8%, but the banks dragged the whole market lower. Westpac lost 3.04% to $33.44, the Commonwealth Bank 3.23% to $84.55 and the NAB 2.18% to $33.59.
The big miners were stronger, with BHP gaining 0.76% to $26.69. Among energy stocks, Santos lost 2.54% to $6.90.
The top stories Thursday:
1. Currency exchange service website OzForex is rebranding under the name OFX as it positions itself to rapidly expand its digital borderless payment business. Its shares gained more than 12% to $2.54.
2. Mining blues. Engineering group Downer EDI reported a 2.7% fall in full profit to $210.2 million and forecast more headwinds ahead. Its shares lost more than 11% to $4.06.
3. Kathmandu has rejected the $A324 million takeover bid by New Zealand retailer Briscoe as inadequate and “highly opportunistic”. Kathmandu shares were up almost 9% to $1.645.
4. The ANZ bank announced a $3 billion capital raising via a share placement to institutions and retail shareholders.
5. Russian hackers have been detected trying to rip cash from online share trading accounts at some of Australia’s biggest brokers, including Morgan Stanley and Commsec.
6. Forget the unemployment rate, the Australian economy is doing really well by creating lots of jobs.
7. Property. The Commonwealth Bank has reduced the amount of finance it will lend to property developers in the latest move by one of Australia’s big banks to reduce their exposure to the property market.
9. AirTree Ventures has led a $2.2 million series A investment in med-tech startup HotDoc which is attempting to improve doctor-patient communication.