the spasx 200 ends in the red for the second straight session 2438172015

The Australian share market had another negative session on Tuesday following the release of disappointing external trade data from China, and a decline in crude oil prices, which led to stocks in the energy sector ending sharply lower.

Westpac Banking Corp (ASX:WBC) announced this morning it will raise AU$3.5 billion through a rights issue of shares priced at $25.50 in the ratio of 1:23, and increase interest rates on all home loans by 0.20 per cent. Shares are halted.

Indices and sectors

The benchmark S&P/ASX 200 fell 30 points, or 0.6 per cent, and closed at 5,202.9, while the broader All Ordinaries index was down 32.8 points, or 0.6 per cent, at 5,234.6.

Sectors that closed in the green included consumer staples (+0.83 per cent), industrials (+0.72 per cent), healthcare (+0.40 per cent) and information technology (+0.03 per cent). The losers included energy (-2.84 per cent), materials (-2.10 per cent), consumer discretionary (-1.03 per cent), telecommunications services (-0.93 per cent) and utilities (-0.45 per cent).

Stocks

The materials and energy sectors suffered sharp losses. Among the large miners, BHP Billiton Limited (ASX:BHP) fell 2.17 per cent to AU$24.81, Rio Tinto Limited (ASX:RIO) was down 2.57 per cent to AU$53.40 and Fortescue Metals Group Limited (ASX:FMG) metals plunged 8.75 per cent to AU$2.19. Atlas Iron Limited (ASX:AGO) was off 3.03 per cent to AU$0.03 and BC Iron Limited (ASX:BCI) shed 7.27 per cent to AU$0.26.

Mining consumables and steel supplier Arrium Ltd (ASX:ARI) was the top gainer on the S&P/ASX 200, up 7.53 per cent to AU$0.100.

In the energy sector, Santos Ltd (ASX:STO) slumped 6.24 per cent to AU$5.56, Origin Energy Ltd (ASX:ORG) lost 5.42 per cent to AU$5.93 and Woodside Petroleum Limited (ASX:WPL) lost 2.06 per cent to AU$31.36. However, Oil Search Limited (ASX:OSH) was up 0.27 per cent to AU$7.36 and Beach Energy Ltd (ASX:BPT) gained 1.67 per cent to AU$0.61. Liquefied Natural Gas Ltd (ASX:LNG) was the top loser on the S&P/ASX 200, closing lower by nearly 10 per cent at AU$1.65.

The big banks lost on average about 0.5 per cent excepting Australia and New Zealand Banking Group (ASX:ANZ) which ended higher by 0.56 per cent. Westpac Banking Corp (ASX:WBC) dipped 0.59 per cent to AU$30.44, Commonwealth Bank of Australia (ASX:CBA) lost 0.56 per cent and National Australia Bank Ltd. (ASX:NAB) fell 0.54 per cent to AU$31.23.

Westpac Banking Corp (ASX:WBC) said today that cash profits rose 3 per cent to AU$7.82 billion during the full year 2015. It also announced a capital raising of AU$3.5 billion through a share entitlement offer.

Consumer staples did comparatively well with Myer Holdings Ltd (ASX:MYR) up 2.79 per cent to AU$0.92, and Metcash Limited (ASX:MTS) moving higher by over 3 per cent to AU$1.35. Woolworths Limited (ASX:WOW) gained 0.83 per cent to AU$26.82 and Wesfarmers Ltd (ASX:WES), the owner of supermarket chain Coles, rose 0.95 per cent to AU$40.58, while Caltex Australia Limited (ASX:CTX) slipped 1.03 per cent to AU$32.65.

Consumer electronics retailer Dick Smith Holdings Ltd (ASX:DSH) rose 5.71 per cent to AU$1.48 and was the second-biggest gainer on the S&P/ASX 200.

Qantas Airways Limited (ASX:QAN) surged higher by over 4 per cent to AU$3.73, and was among the top gainers on the S&P/ASX 200, while Virgin Australia Holdings Ltd (ASX:VAH) remained flat at AU$0.49.

Economic news, currency and market outlook

A monthly survey by NAB showed that Australian business enjoyed somewhat higher confidence during September, due partly to the change of leadership in the federal government. However, NAB Chief economist Alan Oster said the positive change could also be attributed to solid business conditions and an easing of financial market worries. Business conditions showed that the trend in employment trend had turned positive and was now at its highest level since mid-2011, the ABC said.

The Oil Market Report for September from the International Energy Agency said crude oil may be oversupplied well into 2016 on account of slow global economic growth and the lifting of trade sanctions on Iraq. According to the IEA, global demand growth is expected to slow from its five-year high of 1.8 million barrels a day (mb/d) in 2015, to 1.2 mb/d in 2016. If sanctions are lifted, additional Iranian crude of 700,000 barrels per day could hit the market.

China’s external trade worsened again during September, with imports and exports declining by 17.7 per cent and 1.1 per cent respectively.

According to RBA deputy governor Philip Lowe, home prices in Sydney may be declining because of increasing supply hitting the market. "I think we are on the cusp of seeing the supply response finally kick in, moderating price growth,” he said, according to the ABC. Meanwhile, according to a report in The Sydney Morning Herald this morning, Westpac Banking Corp (ASX:WBC), the country’s second-biggest bank, has raised all of its home loan interest rates higher by 0.2 percentage points. The revised interest rates will take effect from November 20.

On Wall Street Tuesday, stocks ended lower in response to downbeat trade data from China and fresh selling in the biotech sector, according to Reuters. The Dow Jones Industrial Average fell 49.97 points, or 0.29 percent, to 17,081.89, the S&P 500 lost 13.77 points, or 0.68 percent, to 2,003.69 and the Nasdaq Composite dropped 42.03 points, or 0.87 percent, to 4,796.61.

The Australian dollar has corrected to below 73 US cents on the back of disappointing Chinese trade data and a decline in commodity prices. At 07:00 am this morning (AEDT) the Australian dollar was trading at 72.64 US cents, down from 73.11 US cents on Tuesday, according to the Business Spectator.

The Australian stock market is likely to open slightly lower given that at 06:45 am (AEDT) the December ASX SPI200 Index (AP) Future contract was down 38 points at 5,153.