Australian shares closed in the red today after declining in afternoon trade. Gold stocks advanced while the biggest drag on the market came from property and financials.
The S&P/ASX 200 Index closed 43 points lower at 4,701 while on the futures market, the SPI200’s down 27.
The economic news of the day was a report from U.S. based Boston Consulting Group which showed that Australians suffered the third largest drop in personal wealth in a survey of 62 countries because of our high exposure to equities markets. The report said that personal wealth which excludes housing and self-owned businesses - fell 27.1 per cent in 2008.
To company news around this afternoon: AGL Energy (ASX:AGK) says it will bank $88 million of proceeds from the sale of its Hallett 4 wind farm in South Australia which it developed. AGL is selling the asset to a consortium made up of two Japanese companies and Australia's APA Group. The deal will see the buying consortium paying for all remaining development costs which means AGL won’t have to fund the remaining $160 million in costs. AGL Energy shares finished the day 0.15% lower at $13.65.
Caltex Australia (ASX:CTX) has received a time extension from the Australian Competition and Consumer Commission in order to address concerns that its purchase of Exxon Mobil’s 302 service stations may reduce competition. Caltex said today they continue to work with the ACCC and that the commission’s findings are now expected by November 11. Caltex shares closed steady at $12.11.
Also making news: Lead and zinc miner Perilya (ASX:PEM) said that operations resumed today at its Broken Hill mine after a city-wide power outage caused by dust storms on September 21 caused the mine to be shut down. Perilya said it still expects to meet its full year production target.
Domino's Pizza (ASX:DMP) says it will increase the number of their franchises to boost growth in Australia and New Zealand over the next year.
Taking a look at some of the stories covered in our earlier reports: Macquarie Group (ASX:MQG) plans to acquire boutique U.S. investment bank Fox-Pitt Kelton Cochran Caronia Waller for US$130 million. In news this afternoon, Macquarie has also bought a $1 billion portfolio of 60,000 car loans from an undisclosed Australian automotive financier.
GrainCorp Ltd (ASX:GNC) says it has secured three more trains for three years for its contract with Australian Railroad Group, a subsidiary of national transport and logistics company QR.
In the best and worst performers: The best performing sector at close was the Telecommunications index, up 5 points to 1,142 while the worst performing index by percentage points was the Real Estate Investment Trust index; which lost 17 points to 941.
The best performing stock in the S&P/ ASX200 was Energy World Corporation and shares jumped 10.71 per cent to $0.465. Shares Sundance Resources and St Barbara in also gained.
The worst performing stock was Iress Market Technology and shares fell 5.42 per cent to $8.03. Shares in Minara Resources and Transfield Services also lost ground.
In commodities, gold is trading at $1,005.80 U.S an ounce and since this morning light crude is down 76 cents at $69.85 U.S a barrel.
