The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is sitting in the red again on Friday, weighed down by some of the market's biggest and most widely-held stocks including Telstra Corporation Ltd, Medibank Private Ltd, BHP Billiton Limited and Insurance Australia Group Ltd.
Telstra Corporation Ltd (ASX: TLS) shares fell by as much as 0.9% early in the session after it was announced that its long-running chief executive officer, David Thodey, would step down from the top job in May. You can read more about his departure here; Thodey has served as CEO for almost six years and has done an incredible job of turning the company around and improving its efficiencies in that time.
Medibank Private Ltd (ASX: MPL) delivered its highly anticipated first-half earnings report this morning. While it reduced its management costs and improved its operating margins during the reporting period, it also highlighted strong headwinds facing the health insurance industry. These comments are likely to have spooked investors, especially given that the stock is trading on a rather lofty valuation of 27x last year's earnings.
BHP Billiton Limited (ASX: BHP) shares have been impacted by a fall in oil prices overnight with the stock dropping 0.7% to trade at $32.27. While oversupply concerns have eased in recent weeks, oil prices fell again on Thursday night after the US government reported that the nation's crude inventories had again risen to record-highs. After iron ore, oil is BHP Billiton's second-biggest earnings generator.
Insurance Australia Group Ltd (ASX: IAG) shares have taken a beating this week after the general insurer reported a 9.8% decrease in net profit after tax (NPAT), citing an "increasingly competitive environment" as the culprit. The stock is down 1.3% for the day, or 7.5% since Wednesday, and could be worth a second look – particularly given its forecast 9% grossed up dividend yield.
