US Federal Reserve speculation leads to heavy sell-offs among the big banks and resource stocks

Robert Goudie

Robert Goudie

The market finished the week at 5,396.74, down 43.71 points from the previous week's close of 5,440.45.

On Friday's trade the All Ordinaries finished up 59.64 points or 1.1 per cent.  

On Monday, the Australian Securities Exchange index fell to a fresh two-month low near the key level of 5,200 points, weighted down by heavy sell-offs among the big banks and resource stocks, amid renewed expectations that the US Federal Reserve will lift cash rate soon.

All sectors delivered negative results, with health care being the worst performer. The Australian dollar depreciated against most major currencies.

On Tuesday, Fortescue Metals Group advised that it issued a US$700m repayment notice, generating annual interest savings of US$26m. FMG added four cents finishing the trading week at $4.76.

On Wednesday, Southern Cross Media Group announced that it has entered into a new six year agreement with the AFL for the radio broadcast of AFl games and other AFL events on the Triple M Network and affiliated regional stations.

Triple M will have FM commercial exclusivity in Melbourne, Adelaide and Perth and in addition to broadcast and simulcasting on digital radio, for the first time the Company will be streaming the games via each station's website.

The new agreement commences in November. SXL added four cents closing at $1.60.

On Thursday, GPT Group announced that it has agreed to purchase 164.2m securities in the GPT Wholesale Shopping Centre Fund for $157m.

The purchase of these securities will increase GPT Group's interest in the fund from 20.2% to 25.3%. GPT lost 1 cent finishing at $4.80.

At the close of weekly trading, the gold price finished at $1,310.20 per ounce, the WTI oil price traded at $43.62 a barrel, and the Australian dollar was worth US $0.75.     

In the US on Friday night, the Dow Jones finished down 88.68 points to end the week at 18,123.80.

This result has caused the Share Price Index (SPI) to end the week at 5,275.  

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