The Aussie market open lower and closed in the red despite reaching positive territory half way through the session. Energy and materials stocks were a drag on the market.
The S&P/ASX 200 Index closed down 27 points at 4,143 while on the futures market, the SPI200’s down 44.
In economic news: the Australian Bureau of Statistics showed that Australia's agricultural production increased by 20 per cent in 2007/08 to $43.3 billion. Most of the increase in the value of production was due to improved crop conditions, particularly wheat and hay.
To company news around this afternoon, BHP Billiton (ASX:BHP) has agreed to take a 33-44 percent price cut for contracted iron ore shipments for 23 percent of its total sales volumes. It was not reported which customers the agreement relates to and whether there are any Chinese steel-makers involved. Chinese mills have been negotiating for a deeper price cut. BHP said that a further 30 percent of volumes will be sold at quarterly negotiated, spot and index-based prices. Negotiations for the remaining 47 per cent of iron ore volumes are ongoing. BHP shares closed 1.55% lower at $37.43 today.
Straits Resources (ASX: SRL) reported fourth quarter revenue that fell 53.6 per cent compared to the previous quarter. The result was hit by declining metal prices and lower production as it prepared its Whim Creek copper mine for closure. Straits Resources shares declined 0.48% to $2.09 today.
Also making news today: shares in Virgin Blue Holdings (ASX:VBA) jumped as they resumed trading after Australia's second-largest airline managed to raise $133 million in an institutional share placement and entitlement offer at $0.20.
Liberty Resources (ASX:LBY) said it has agreed to form a joint venture with Carbon Energy (ASX:CNX) to develop and build pilot plants to convert coal into cheap power with nearly zero greenhouse gas emissions.
Taking a look at some of the stories covered in our earlier reports: NAB (ASX:NAB) announced it would abolish its $30 fee on overdrawn accounts and said it will acquire 80.1% of Goldman Sachs JBWere’s private wealth management business in Australia and New Zealand.
Macquarie Group (ASX:MCQ) shares gained as the investment bank’s chief Nicholas Moore said at the AGM this morning that solid operational performances from most major divisions in the June quarter had been achieved. The bank also flagged a 28% dip in profit for the six months to September 30.
Now to the best and worst performers: The sector posting the biggest gain today was the Healthcare index which rose 72 points to 7,786; while the worst performing sector at close was the Materials index; which lost 214 points to 10,903.
The best performing stock in the S&P/ ASX200 was Virgin Blue and shares gained 22.45% to $0.30. Shares in FKP Property and Transfield Services also closed higher.
The worst performing stock was Macquarie Infrastructure with shares falling 6.8 per cent to $1.44. Shares in Alumina and Equinox Minerals also closed lower.
In commodities, gold is trading at $935.70 U.S an ounce and light crude oil is down 66 cents since this morning at $66.57 U.S a barrel.
