Aussie shares have closed flat today, loosing steam after a stronger start this morning on the back of an unexpected drop in the unemployment rate in the U.S, investors cautious ahead of a string of company earnings due out this week.
The S&P/ASX 200 Index closed 5 points higher at 4,304 while on the futures market, the SPI200’s up 3.
To company news around this afternoon: Iron ore producer Fortescue Metals Group Ltd (ASX:FMG) has reported net profit of US$508 million for the full year, compared to a loss of US$771.11 million the year before. Revenue climbed to US$1.83 billion following an expansion of the company’s Cloudbreak mine in the Pilbara, Western Australia. Fortescue says it shipped a total of 27.3 million tonnes of ore from a total volume of ore mined of 31 million tonnes. Fortescue Metals Group shares closed 5.67 per cent lower at $4.16.
Coal miner Felix Resources Ltd (ASX:FLX) has placed its shares in a trading halt today amid speculation it is set to announce a potential takeover by China’s Yanzhou Coal. Felix entered a trading halt this morning pending the outcome of negotiations on a change of control transaction. According to the Sydney Morning Herald the Chinese company is offering just under $20 a share, valuing Felix at approximately $3.7 billion. The paper says Yanzhou Coal has been in potential takeover talks with Felix since last year. Felix Resources shares are in a trading halt and last traded at $16.90.
Also making news today: Health products developer and marketer Blackmores Ltd (ASX:BKL) has upgraded its profit guidance to approximately nine per cent above last year’s result for the year to June 30, following a stronger than expected fourth quarter.
Village Roadshow Ltd (ASX:VRL) says it has been approached by major shareholder Village Roadshow Corporation about privatizing the company. Village Roadshow also announced that it has sold its cinema, film distribution business in Greece to private European investor for around $80 million.
A report published yesterday on a Chinese government-run website claims Rio Tinto Ltd (ASX:RIO) spied on China’s steelmakers for six years, costing them over $100 billion in excessive charges for iron ore. The accusations follow the detention of four Rio executives, including Australian Stern Hu on charges they stole state secrets. And Bendigo and Adelaide Bank Ltd (ASX:BEN) has announced a $300 million capital raising to help strengthen the bank’s capital base, after posting a big drop in full year earnings.
To the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 21 points to 821; while the worst performing sector at close was the Utilities index; down 30 points to 4,012.
The best performing stock in the S&P/ ASX200 was Goodman Group shares rose 15.73 per cent to 51.5 cents after the company announced it had successfully completed a $923 million institutional equity raising. Shares in Carnarvon Petroleum and ING Industrial Fund also closed higher.
The worst performing stock was Crane Group with shares falling 9.44 per cent to $10.07. Shares in Fortescue Metals Group and Independence Group also closed lower.
In commodities, gold is trading at $955.20 U.S an ounce and light crude is down 28 cents at $70.65 U.S a barrel.
