Iluka shares smashed, ASX down 1%

This is not the time to put your head in the sand

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has fallen 1% to close at 4,118.3, taking its lead from US markets and adding its own view. US economic data out on Friday suggested that the US recovery was stagnating.

Locally, job advertisements on the internet and major newspapers fell 1.2% according to the ANZ job advertisements survey out today. This follows a 2.6% drop in May, which may mean that employers are holding off on new hirings until there's greater certainty in the market.

The Australian dollar was flat, trading around 101.8 US cents.

Company News

Iluka Resources Ltd (ASX: ILU) shares fell 24% to close at $8.88 after the company advised the market of falling sales and an uncertain outlook. The company also stated that it was no longer able to provide longer-term forecasts, partly due to moving to short term sales contracts.

Leighton Holdings (ASX: LEI) announced that the company had sold its Thiess Waste Management Division to Germany's Remondis for $218m. The sale will generate a pre-tax capital gain of approximately $115m, and cash proceeds will be used to reduce the company's debt.

Lend Lease Group (ASX: LLC) will make an $80m profit from the sale of land which will hold two office towers at Barangaroo, a new development on Sydney's foreshore. The company has sold the land to a new $2 billion property trust, managed by, guess who? No not Macquarie, but Lend Lease. According to CEO Steve McCann the company would take a profit on the sale of the land, on the construction margin, on completion of the towers, and then on the sale of its stake. (It's good to be a property developer!)

IGA Supermarkets, supplied by Metcash Limited (ASX: MTS) has announced a $5m six week advertising campaign and cut some prices by as much as 25%, as it tries to compete with Coles – owned by Wesfarmers Limited (ASX: WES) and Woolworths Limited (ASX: WOW).

Winners and Losers

Miners led the market down, with Newcrest Mining Limited (ASX: NCM) falling 2.7% to $23.44, while Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP) lost 2.2% and 1.9% respectively.

Perennial yo-yo Linc Energy Limited (ASX: LNC) fell 8.8% to 67.5 cents on absolutely no news.

Telstra Limited (ASX: TLS) was one of the few majors advancing, adding 4 cents, or 1.1% to close at $3.78.

Foolish takeaway

Yet another day of doom and gloom in the market place. If this continues, we may yet be able to buy some quality businesses like Cochlear and Woolies on the cheap. Keep the faith, Fools!

If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

 Motley Fool writer/analyst Mike King owns shares in Cochlear, Leightons, Woolworths and BHP. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »