Share market ends week in the red

jialiren

THE share market closed almost 1.5 per cent lower, with falls from the financial sector dragging the local bourse into the red.

At the close, the benchmark S&P/ASX200 fell 73.4 points, or 1.47 per cent, to 4904, while the broader All Ordinaries shed 74.6 points, or 1.48 per cent, to 4978.

At 4.37pm (AEST) on the Sydney Futures Exchange, the September share price index contract was 65 points lower at 4913,on a volume of 26,636 contracts.

CMC Markets senior dealer Dominic Vaughan said the troubled financial sector was again a drag on the index, with the ASX/200 failing to hold its gains through 5000 this week.

"Plagued by higher funding cost and ongoing fears of further writedowns, the sector has now tumbled over 40 per cent since its 2007 November highs,'' Mr Vaughan said.

"Shares in Suncorp fell 13 per cent as the company issued a profit warning. The market is punishing companies that are not meeting expectations at this stage.''

Suncorp dropped $1.85, or 13.83 per cent, to $11.53 after the group said it expected 2008 profit would fall between $525 million and $550 million amid bad weather, a global credit squeeze and rising bad debt.

The banks were weaker, with ANZ falling eight cents to $16.17, National Australia Bank dropping 36 cents to $24.34, Commonwealth Bank shedding 25 cents to $39.50 and Westpac losing 56 cents to $20.99.

Food producer and retailer Buderim Ginger gained 1.5 cents to 48.5 cents after the company forecast profits to at least double as the company expands its macadamia nut business.

The retailers were mixed, with Woolworths adding 56 cents to $25.76, Wesfarmers gaining one cent to $34.40, David Jones shedding eleven cents to $3.29 and Harvey Norman falling 12 cents to $3.13.

The media sector was weaker, with Consolidated Media Holdings dropping four cents to $2.90, News Corp shedding four cents to $15.81, its non-voting shares losing $15.34 and Fairfax falling nine cents to $2.66.

The big miners were weaker, with BHP Billiton shedding 60 cents to $39.11 and rival Rio Tinto losing $3.80 to $121.60.

The energy sector was weaker, with Woodside dropping $1.07 to $52.73, Santos giving up 65 cents to $17.45 and Oil Search losing 17 cents to $5.56.

The spot price of gold was lower and at 4.5pm AEST was trading at $US910.40 an ounce, down $US4.00 on yesterday's local close of $US914.40 an ounce.

The gold miners were weaker, with Newcrest falling 53 cents to $28.95, Lihir dropping eight cents to $2.64 and Newmont giving up one cent to $5.06.

North Australian was the most traded stock on the market, with 68.1 million shares changing hands, collectively worth $687,226. The diamond explorer shed 0.2 cents to close at one cent.

Preliminary market turnover reached 1.16 billion, worth a total value of $4.2 billion, with 394 stocks up, 670 down and 290 unchanged.