The S&P/ASX had its biggest weekly fall since mid June, losing 146 points (-2.7%) to finish the weeks trade at 5,283.8 points.
The move lower had several factors, but largely came from a fall in the price of oil. The price of Brent fell by $1.42 (-2.69%) by 4pm on Friday, trading at $50.47 per barrel. Woodside Petroleum (ASX:WPL) and Santos Limited (ASX:STO) lost ground as a result, falling by 3.34% and 7.29% respectively.
The big four banks mostly had moves to the downside, with Commonwealth Bank of Australia (ASX:CBA) losing 2.87% over the period, ending the week down $2.15 at $72.75. Westpac Banking Corp (ASX:WBC) lost 19c (-0.62%) and ANZ Banking Group Limited lost 63c (-2.23%), closing at $30.24 and $27.62 respectively.
The biggest news of the week came from Ardent Leisure (ASX:AAD), the operator of Dreamworld theme park, whose shares tumbled 22.14 percent to $2.04 per share after four people were killed due to an apparently malfunctioned ride on Tuesday.
Ardent Leisure, which was formed out of the Macquarie Leisure Trust, has owned Dreamworld since the company listed on the ASX in 1998 and has held the value of Dreamworld and the adjoining WhiteWater World at $235 million.
The company’s theme parks have previously represented about 33 per cent of Ardent’s fiscal 2016 group earnings and brought in income of about $31.65 million per year.
The company is now co-operating with a coronial investigation into the death of the four people while the park remains closed until police are satisfied with their investigations.
In other news, a company that makes a high-tech carbon material used by the United States Navy, CFOAM Limited (ASX:CFO) has soared on its ASX debut.
CFOAM, which makes the high-strength carbon at a plant in West Virginia in the United States, raised $9 million in a float at an issue price of 20¢ per share. The company’s shares closed at a price of 62c per share at the conclusion of Fridays trade, a remarkable 310% increase from its issue price of 20c.
Toby Chandler, a non-executive director, said the company had opted to list on the Australian Securities Exchange rather than exchanges in the US because it was a much better fit for a company which had already validated its technology and was making a product.
During the week, Baker Young staff met with Gridcomm, a company which is in the process of listing onto the Australian Securities Exchange. The company is listing through Odin Energy (ASX:ODN) and is looking to raise $AUD 6-8m in its inital public offering (IPO).
GridComm is an Internet of Things (IoT) technology company that transforms a city’s power grid into a network that can communicate with every streetlight. The technology is increasingly validated as companies such as Downer, Intel, IBM and Philips seek partnering agreements for deployment globally.