Australian shares lost ground today as global markets and metal prices retreated overnight. The local resource sector was a drag on the market today.
The S&P/ASX 200 Index closed 33 points lower at 4,701 while on the futures market, the SPI200’s down 21.
The economic news of the day was the Housing Industry Association reporting an 11.4 per cent jump in new home sales in August as first home buyers flooded into the market.
To company news around this afternoon: Western Plains Resources’ (ASX:WPG) outback mining joint venture project with Chinese state owned Wuhan Iron and Steel looks unlikely to be approved by the Australian government. Today the Australian Defence Department said it would not support the Chinese ownership of a project within the Woomera missile range which means there is very little chance the project will be approved. The announcement is expected to upset China. Western Plains Resources’ shares were steady today at $0.27.
Woolworths Limited (WOW) said today that shareholders that hold more than 75% of Danks Holdings have accepted the proposed takeover by the joint venture company of Woolworths and U.S. retailer Lowe’s, Carboxy. Woolworths chief executive Michael Luscombe said he was pleased with the uptake of the offer and said he looks forward to support independent retailers and improve the competitiveness of the local hardware stores. Woolworths shares lost 0.21% to $29.20 today.
Also making news: Junior gold and iron ore explorer Cazaly Resources (ASX:CAZ) announced it would raise up to $4 million through a proposed placement to an unidentified Chinese company.
Uranium explorer Toro Energy (ASX:TOE) has begun exploratory drilling at its Lake Mackay project in Western Australia. The area has not been previously been explored and results will be released by the end of the year.
Taking a look at some of the stories covered in our earlier reports: David Jones (ASX:DJS) shares lost ground as it posted a 6.3 per cent rise in net profit for the year and gave a cautious outlook.
Ten Network Holdings (ASX:TEN) shares were sold off as its major shareholder Canwest Global Communications plans to sell down its 50.06 per cent stake in the company.
Now to the best and worst performers: The best performing sector at close was the Healthcare index which gained 15 points to 8,802 while the worst performing was the Energy index; which fell 248 points to 16,451.
The best performing stock in the S&P/ ASX200 was Ausenco and shares jumped 6.82 per cent to $5.95. Macquarie Office and ING Office Fund shares also gained.
The worst performing stock was Karoon Gas and shares tumbled 18.72 per cent to $8.25. Shares in Cabcharge and Mirvac Group also lost ground.
In commodities, gold is trading at $1,012.65 U.S an ounce and since this morning light crude oil is down 50 cents at $68.47 U.S a barrel.
