Market finishes lower as investors pile into gold companies


May 23, 2016 17:47:27

The Australian share market has finished lower, pulled down by financials and mining stocks, as investors piled into safe haven gold companies.

The ASX 200 lost 0.6 per cent to 5,319 while the All Ordinaries dipped 0.6 per cent to 5,385.

Westpac dipped 1.3 per cent and NAB slipped 0.6 per cent.

Among miners, BHP Billiton dropped 2.6 per cent to one-week lows of $18.37 while Rio Tinto tumbled 2.3 per cent.

Gold miners bucked the broader market trend to gain, with Newcrest Mining jumping 1.7 per cent.

Flight Centre slumped 8.9 per cent to near 9 month lows of $33.55.

The embattled company issued a profit warning, blaming geopolitical uncertainty including the Australian Federal Election in July, the Brexit referendum next month and the Zika virus affecting travel to South America.

Meanwhile, Linc Energy is set to be wound up after creditors unanimously voted to place the troubled oil and gas company into liquidation.

Electrical and white goods retailer The Good Guys has moved a step closer to listing on the share market, appointing Credit Suisse, Goldman Sachs and UBS as joint lead managers.

Last week, JB Hi-Fi said it was in preliminary talks about a takeover bid. Shares in JB finished 2.3 per cent lower today.

About 5:00pm the Australian dollar was buying 72.5 US cents, 64.5 euro cents, 79.5 Japanese yen and 50 British pence.

Spot gold was down 0.4 per cent to $US 1,251 an ounce while West Texas crude was fetching 47.75 US a barrel.








First posted

May 23, 2016 17:46:02

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