Australian stocks closed slightly weaker, dragged into the red by a weak U.S. session overnight and on lower metal prices. Energy and some financials also lost ground today amid a busy reporting season.
Minutes from the Reserve Bank’s August board meeting showed it will raise interest rates if the economy continues to recover as forecast, saying the economy is faring better than expected and further cuts in rates are unlikely.
The S&P/ASX 200 Index closed 7 points weaker at 4,382 while on the futures market, the SPI200’s down 8.
To company news around this afternoon: As part of its asset sale plan, Rio Tinto announced that it was selling four of its Alcan packaging business to Australian packaging company Amcor for just over $US2 billion. The sale will be used to pay down some of Rio’s debt. Amcor also reported today that net profit for the year fell 18.2 per cent compared to the year before. The company also told the market this afternoon that it will not be taking on Alcan’s debt as part of the purchase and would be undertaking a capital raising. Amcor shares were in a trading halt while Rio shares closed 0.35% lower at $56.90.
Western Areas (ASX:WSA) reported a net loss of $35.2 million for 2009 which was 56% lower compared to the previous year because of the decline in nickel prices. Western Areas shares declined 8.3% to $5.30.
Also making news today: Transfield Services (ASX:TSE) is proposing to make 154 staff redundant to allow it to stay ahead in its telecommunications business.
Engineering group Monadelphous Group (ASX:MND) reported net profit that improved 6.8 per cent compared to the year earlier. The company said it has entered 2009/10 with a healthy forward workload as industry conditions begin to ease and normalize.
Taking a look at some of the stories covered in our earlier reports: National Australia Bank (ASX:NAB) has agreed to purchase the mortgage management business of Challenger Financial Services for $385 million.
OneSteel (ASX:OST) has posted a six per cent fall in net profit for the year to June 30, which was better than expected and said there has been a steady improvement in demand in the last few months.
Now to the best and worst performers: The best performing sector at close was the Telecommunications index, up 10 points to 1,253; while the worst performing sector at close was the Energy index; down 251 points to 15,066.
The best performing stock in the S&P/ ASX200 was James Hardie as it reported a first quarter loss but said U.S. construction market conditions seem to be improving and shares gained 22.32% to $7.07. Shares in Ansell gained after upbeat earnings yesterday and Monadelphous Group shares also closed higher.
The worst performing stock was ING Industrial Fund with shares falling 9.3 per cent to $0.39. Shares in Mincor Resources and Western Areas also closed lower.
In commodities, gold is trading at $940.10 U.S an ounce and light crude is up 22 cents at $66.97 U.S a barrel.
