Australian Stock Market Report –Afternoon November 20, 2014

A man looks the board of the Australian Securities Exchange in central Sydney August 7, 2013. Australian shares skidded 1.3 percent on Wednesday, its biggest fall in five weeks, hit by sharp falls in miners and financials as regional markets tracked a soft Wall Street lead amid uncertainty about the U.S. Federal Reserve's stimulus programme REUTERS/Daniel Munoz (AUSTRALIA - Tags: BUSINESS)

 Australian shares extended their losses this afternoon with hefty losses from the miners a major drag. The ASX 200 Index slumped by 1 per cent to 5316.2 and makes it the worst week since early December 2013 for local shares. Equities have fallen for four straight days and are trading at fresh one-month lows.

 Mining industry losses worsened this afternoon with the S&P/ASX200 Materials Index (a measure of mining stock performance) ending down 2.4 per cent. This takes the losses this week to more than 4 per cent. Weaker than expected manufacturing data in China and Japan (Australia's two biggest trading partners) didn't help.

 BHP Billiton (BHP) slumped by 2.6 per cent and is trading at a 16-month low. The price of iron ore slumped by 3 per cent overnight to US$70 per tonne; a 5.5 year low. BHP told shareholders its plan to split its most profitable commodities from the rest will benefit investors. The miner expects the split to expedite cost cuts and boost productivity. The 45 per cent slump in the iron ore price this calendar year has made profitability a challenge for ore miners. BHP's CEO today said "the time for massive expansions of iron ore are over".

 Supermarket chain Woolworths (WOW) and Coles owner Wesfarmers (WES) underperformed the market. WOW shares slumped 3 per cent and take the losses this month to 13 per cent. Caltex today said it's winding back its fuel network ties with WOW. Wesfarmers (WES) fell by 1.8 per cent.

 New Hope (NHC) ended 1.7 per cent firmer today after delivering a 7 per cent rise in coal sales between August and October. NCH's profit slumped by 21 per cent last year and was driven by a slump in the coal price.

 The Australian dollar fell away this afternoon and buys US$0.859, £0.548, €0.684 and ¥101.9.

 Volume picked up this afternoon with 1.9bn shares traded worth $5.03bn. 327 stocks rose, 569 lost ground and 391 were unchanged.

 Updates on the manufacturing industries of both China and Japan missed the mark however both industries are expanding by the most modest of margins.

 Tonight, manufacturing data in both Europe and the US will be highlights. From 7.30pm AEDT industry data will be released in Germany and France. UK retail sales are out at 8.30pm while home sales and weekly jobless benefits will be out in the US.

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