Aussie shares closed lower today, miners like top miners BHP and Rio Tinto led the declines on a fall in base metal prices and fresh concerns for an economic recovery.
The S&P/ASX 200 Index closed 45 points weaker at 3,784 while on the futures market, the SPI200’s down 32.
In economic news: The TD Securities-Melbourne Institute monthly inflation gauge rose 0.4 per cent in June after a 0.3 per cent fall in May. Annual inflation slowed to 1.4 per cent in June from 1.5 per cent in May.
To company news around this afternoon: Global miner Rio Tinto Ltd (ASX:RIO) has agreed to sell its Alcan Packaging Food Americas division to Bemis Company for US$1.2 billion, of which US$200 million may be in the form of shares in Bemis Company. Chief financial officer Guy Elliot, says the sale is the first significant step in reducing the asset portfolio acquired with Alcan. Alcan Packaging Food Americas generated revenues of US$1.5 billion in 2008, accounting for 23 per cent of Alcan Packaging’s total revenues. Rio says it will review the carrying value of the remaining Alcan Packaging business, which may result in some write-downs. Rio Tinto shares closed 2.22 per cent weaker at $48.50.
Energy company Nexus Energy Ltd (ASX:NXS) says offshore construction work for the Longtom gas project in the Gippsland Basin, offshore Victoria, has been interrupted. The company says the delays are the result of the demobilization of a diving support vessel due to a contractual dispute in relation to its ongoing charter. Nexus says it is in the process of securing an alternative diving support and installation vessel, and the offshore installation work is anticipated to re-commence in approximately three weeks. Nexus Energy shares closed 4.48 per cent lower at 32 cents.
Also making news today: Mineral exploration and resource development company Avoca Resources Ltd (ASX:AVO) has increased its takeover offer for Dioro Exploration NL (ASX:DIO) offering one Avoca share for every 2.4 Dioro shares, valuing each Dioro share at 74.8 cents per share.
Zinc miner Terramin Australia Ltd (ASX:TZN) says production at its Angus mine in South Australia has more than doubled while costs have nearly halved.
Leighton Holdings Ltd (ASX:LEI) has been awarded a contract to build a computer services park in India worth US$230 million.
The Australian newspaper reports that National Australia Bank Ltd (ASX:NAB) and Australia and New Zealand banking group Ltd (ASX:ANZ) are the most likely contenders to buy Suncorp-Metway's banking assets.
Now to the best and worst performers: The only sector in positive territory at close was the Consumer Staples index, up 19 points to 6,619; while the worst performing sector at close was the Materials index; down 220 points to 9,511.
The best performing stock in the S&P/ ASX200 was Macquarie Office Trust shares rose 5.26 per cent at 20 cents. Shares in Carnarvon Petroleum and ConnectEast Group also closed higher.
The worst performing stock was Murchison Metals with shares falling 10.9 per cent to $1.39, the company reached a settlement with rival Chameleon Mining over a claim brought against the company by former Chameleon directors. Shares in AJ Lucas Group and Karoon Gas Australia also closed lower.
In commodities, gold is trading at $928.75 U.S an ounce and light crude oil is down $1.51 since this morning at $65.22 U.S a barrel.
