Following heavy falls on U.S. and European markets overnight, the local share market has closed weaker today. Global miners BHP and Rio Tinto led the declines after a steep fall in U.S. payrolls dented hopes of a global recovery.
On a more positive note, Australia’s services sector showed expansion for the first time in 15 months with the Australian Industry Group/Commonwealth Bank Performance of Services Index rising 10.3 points to a read of 50.2 in June.
The S&P/ASX 200 Index closed 49 points lower at 3,828 and is down 76 points on week. On the futures, the SPI200’s down 81.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index lost 158 points on the four trading day’s week. The S&P500 Index dropped 22, the NASDAQ fell 42 points and the 100 index slid 34 points. And just a quick mention that U.S. markets will be closed for the Independence Day public holiday tonight.
To company news around this afternoon: Mid-tier gold producer Avoca Resources Ltd (ASX:AVO) has announced a record 52,118 ounces of gold production for the June quarter from its 100 per cent owned Higginsville gold project in Western Australia. The company says it is confident it will produce 190,000 plus ounces in the next financial year at an estimated cost of $468 per ounce. In the company’s first year as a gold producer, Avoca says it produced 130,594 ounces thanks largely to its record result in June. Avoca Resources shares closed 2.45 per cent lower at $1.795.
Diversified engineering services company Coffey International Ltd (ASX:COF) says its U.S. subsidiary MSI has been awarded a five year US$66.3 million rule of law project funded by USAID/Mexico. Coffey says MSI will support Mexican-led efforts to improve the justice system, professionalise law enforcement and reduce human trafficking and human rights abuses. The project aims to bring Mexico in line with the global standards set forth in the U.N. and Inter-American Conventions. Shares in Coffey International closed 1.55 per cent weaker at $1.90.
Also making news today: Oil and gas company Beach Petroleum Ltd (ASX:BPT) says it has decided to extended the takeover offer for Drillsearch until August 14 and waive all conditions.
And iron ore producer BC Iron Ltd (ASX:BCI) has approved the development of its Nullagine iron ore project after completing a feasibility study into the project.
Now to the best and worst performers: The best performing sector at close was the Consumer Staples index, up 35 points to 6,600; while the worst performing sector at close was the Materials index; down 273 points to 9,731.
The best performing stock in the S&P/ ASX200 was Eastern Star Gas up 8.7 per cent to 87.5 cents after Santos acquired a 19.9 per cent stake in the company and permits in the Gunnedah Basin operated by Eastern. Shares in Kagara and Australand Property Group also gained.
The worst performing stock was Murchison Metals with shares falling 7.42 per cent to $1.56. Shares in Sundance Resources and Roc Oil Company also closed lower.
The Aussie dollar is currently buying 79.88 U.S cents and is down on the week. Gold is trading at $933.90 U.S an ounce and is down $4.65 on the week.
Finally, oil is up 1 cent today to $66.74 U.S a barrel.