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Market Wrap: ASX plunges 2.7%
18 May 2012 - ASX plunges 2.7%. Paladin Energy Limited’s (ASX:PDN) Kayelekera mine is back in full operation after inking a deal with striking workers in Malawi.
Midday: ASX sinks to lowest level this year
18 May 2012 - ASX sinks to lowest level this year. Bill Shorten comes out swinging at BHP Billiton Limited's (ASX:BHP) chairman’s comments that Australia’s industrial relations system has become an obstacle to big business.
Outlook: Aus shares set to slump
18 May 2012 - Aus shares set to slump. Commonwealth Bank of Australia’s (ASX:CBA) chief affirms the bank is prepared for a possible Greek exit from the euro currency union.

The Australian share market plunged 2.7 per cent today as a week of turmoil on global markets wiped off all of this year’s gains.

Figures

Today, the S&P/ASX 200 index lost 111 points finishing the week 239 points lower at 4,047. On the futures market, the SPI is currently 102 points weaker.

Looking at Wall Street, over its four trading days this week: The Dow Jones Industrial Average fell 413 points. The S&P 500 Index lost 53 points, the Nasdaq lost 120 points, and the 100 Index shed 107 points.

Company news

Paladin Energy Limited’s (ASX:PDN) Kayelekera mine is back in full operation after inking a deal with striking workers in Malawi. Employees have dropped demands for a 66 per cent pay rise following a 50 per cent devaluation of the local currency. The uranium miner has in turn agreed to review salaries within six months. Paladin shares fell 5.49 per cent today, closing at $1.21.

Billabong International Limited (ASX:BBG) founder and shareholder Gordon Merchant has revealed he personally asked the former chief executive Derek O’Neill to resign, after twenty years of service. That’s according to Fairfax Media. Mr Merchant has publically backed the appointment of former Target boss Launa Inman as the new chief executive. Billabong shares fell 2.33 per cent, closing at $2.10.

Sleep disorder equipment supplier ResMed Inc. (ASX:RMD) says it will starting paying quarterly dividends next financial year.

PanAust Limited (ASX:PNA) expects production to rise after the upgrade of its flagship copper mine.

Best and worst performers

The sector with the smallest losses was Heath Care falling 87 points to close at 8,882. The worst performing sector was Financials excluding Real Estate Investment Trusts, losing 156 points to close at 4,516.

The best performing stock in the S&P/ASX 200 was Evolution Mining Limited (ASX:EVN), rising 11.44 per cent to close at $1.51. Shares in Gryphon Minerals and Oceana Gold Corporation also closed higher.

The worst performing stock was OneSteel Limited (ASX:OST), dropping 14.29 per cent to close at $0.90. Shares in Linc Energy and Gindalbie Metals also closed lower.

Commodities

Gold is trading at $US1,570 an ounce and is down $8.60 on the week. Light crude is $0.85 lower at $US91.71 a barrel.

The Australian dollar

The Australian dollar is buying 98.08 US cents and is 2.1 cents down over the week.

Benwest Investment Services Pty Ltd
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