Australian Stock Market Report – Afternoon 8/7/13

AFTERNOON REPORT
(5pm AEST)

The Australian share market had its worst session since early July today, as investors sold out of equity markets on fears the US Federal Reserve could soon start winding back its QE3 stimulus program.

The All Ordinaries Index fell 1.8 per cent, and closed below the 5000 point level for the first time since the 22nd July.

Every sector finished in the red, although there were significant losses from key mining, energy and financial players. Iron ore miner Fortescue Metals Group (FMG) finished down 4.6 per cent to $3.75 while Macquarie Group (MQG) was lower by 3 per cent to $43.68.

Bucking the trend was media stocks New News Corp (NNC) and 21st Century FOX (FOX). Both companies reported 4th quarter and Full Year earnings today, their first results since splitting into two companies from News Corp at the end of June.

Higher profits at FOX's cable networks and lower restructuring charges saw total revenue rise 15.6% in 4Q13 to US$7.2B. The company gave bullish guidance for FY14 in a conference call in New York while Chairman and CEO Rupert Murdoch also released an upbeat statement. ´´Although a significant amount of time and effort was spent over the past 12 months on this separation, we never lost focus on the operation of our businesses....(and) as a result of these advances, 21st Century Fox is poised to deliver continued innovation for our customers.´´ FOX shares rose 0.8 per cent to $35.11 today.

There was not much detail in NNC's result but more detail is expected at tomorrow's investor briefing. NNC shares rose 0.7 per cent to $18.095 by close.

On the market 1.6 billion shares changed hands, worth $4.95 billion. 282 were up, 626 were down and 313 were unchanged.

At 5pm AEST the SFE 200 Futures Index was at 4966, down 94 points.

Ahead tonight, weekly housing finance data is released together with consumer credit.

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