The Australian share market has closed the session lower today, investors showing some caution ahead of more company earnings results due out of the U.S. next week and what they could show about the health of an economic recovery.
The S&P/ASX 200 Index closed 16 points lower at 4,753 and is up 151 points on week. On the futures, the SPI200’s down 23 points.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index up 299 points on the four trading days this week. The S&P500 Index gained 40, the NASDAQ rose 76 points and the 100 index added 55 points.
To company news around this afternoon: Top Telco Telstra Corporation Ltd (ASX:TLS) has voiced its opposition to a split of its operations saying it is unnecessary and would make it harder to achieve the Government’s objectives for the national broadband network. In a submission to the Senate inquiry into the proposed Telecommunications Legislation Amendment Bill 2009 Telstra says the bill will impede achievement of the national broadband network vision, reduce competition, harm consumers and destroy value for around 1.4 million Australian’s who have purchased Telstra shares from the Government in the last 12 years. Under the bill Telstra faces structural separation of its wholesale and retail businesses. Telstra has asked the Senate to delay debate on the bill until its discussions with the Government are complete. Shares in Telstra closed 2.17 per cent lower at $3.16.
Rural services company Elders Ltd (ASX:ELD) has decided not to participate in the capital raising announced by Forest Enterprises Australia Ltd (ASX:FEA). As a result Elders interest in Forest Enterprises Australia will be diluted from 31.1 per cent to approximately 13.5 per cent. Elders says the combination of this dilution and the increase in Forest Enterprises Australia’s assets through the capital raising will require Elders to book a non-cash write down of approximately $32.2 million to the carrying value of its shareholding in the company. Elders shares closed 2.27 per cent weaker at 21.5 cents
Also making news today: St George Bank Ltd, now a part of Westpac Banking Corporation (ASX:WBC), has followed closely behind the other top banks and passed on the full rate rise to its customers. St George raised its variable home loan rate by 0.25 per cent, in response to the RBA raising the Official Cash Rate by the same amount.
And mid-tier gold producer Avoca Resources Ltd (ASX:AVO) says it produced 50,584 ounces from its Trident underground gold mine during the September quarter. Avoca says operating costs for the Trident production during the quarter amounted to $428 an ounce, with revenue for the 49,517 ounces sold during the quarter coming to $1,158 an ounce.
Now to the best and worst performers: The best performing sector at close today was the Industrials index, up 33 points to 3,844; while the worst performing sector at close was the Health Care index; down 191 points to 8,414.
The best performing stock in the S&P/ASX200 was Sundance Resources shares climbed 10.71 per cent to $0.155. Shares in Pacific Brands and ConnectEast Group also closed higher.
The worst performing stock was Straits Resources with shares down 7.47 per cent at $1.61. Shares in Lynas Corp and St Barbara also closed lower today.
The Aussie dollar is currently buying 90.37 U.S cents and is up nearly 4 cents on the week. Gold is trading at $1049.45 U.S an ounce and is up $48.10 cents on the week.
Finally, oil is down 58 cents at $71.11 U.S a barrel.
