The Aussie share market recovered from earlier losses to close marginally lower today, investors cautious ahead of the upcoming corporate earnings period.
The S&P/ASX 200 Index closed 5 points lower at 3,763 while on the futures market, the SPI200’s up 10.
In economic news: The ABS reports that employment fell by 21,400 in June taking the jobless rate to 5.8 per cent, up from 5.7 per cent in May.
To company news around this afternoon, Australia and New Zealand Banking Group (ASX:ANZ) says negotiations with the Royal Bank of Scotland Group regarding the potential acquisition of certain Asian assets owned by RBS Group are progressing but so far incomplete. The bank also says it raised $2.2 billion via its share purchase plan, following strong support from retail investors. ANZ says that while the economic outlook remains subdued and somewhat unpredictable, there has been no material change in ANZ’s earlier guidance on bad debt provisioning for 2009. ANZ shares lost 2.76 per cent today to $15.85.
Mineral explorer Kagara Ltd (ASX:KZL) says that the Foreign Investment Review Board has given the green light to China’s Guangdong Foreign Trade Group to take a 19.9 per cent stake in the company. Guangdong will initially invest $57 million at 60 cents per share through an entitlement offer shortfall and a placement for a 15 per cent holding in Kagara. The Chinese company is then entitled to increase its stake in Kagara to 19.9 per cent by subscribing for additional shares at 80 cents a share by August 10, 2009. Kagara shares closed steady at 67.5 cents.
Also making news today: Toy wholesaler and distributor Funtastic Ltd (ASX:FUN) says it has sold its Manchester business unit to Network Clothing Company for around $2.4 million.
And U.S. based aluminium giant Alcoa (ASX:AAI) has reported a loss for the second quarter that was smaller than analysts had expected. The company posted a loss, excluding certain items, of 26 cents a share, with analysts expecting a 38 cent loss.
Virgin Blue Airlines Group (ASX:VBA) has announced plans to form a joint venture with Delta Air Lines that will expand both carriers reach between the U.S, Australia and the South Pacific.
Infrastructure company Leighton Holdings Ltd (ASX:LEI) subsidiary Thiess has won a $500 million contract to construct the site preparation and temporary facilities for the Gorgon Project on Barrow Island for Chevron Australia.
Now to the best and worst performers: The best performing sector today was the Consumer Discretionary index which rose 17 points to 1,249; while the worst performing sector at close was the Real Estate Investment Trust index; down 12 points to 718.
The best performing stock in the S&P/ASX200 was BlueScope Steel shares up 7.02 per cent at $2.44. Shares in Boart Longyear and CSR also closed higher.
The worst performing stock was Ten Network Holdings with shares falling 6.99 per cent to $1.065. Shares in NRW Holdings and GPT Group also closed lower.
In commodities, gold is trading at $914.20 U.S an ounce and light crude oil is up 51 cents at $60.65 U.S a barrel.
