The Australian share market has closed lower today ahead of earnings results from some of the top banks and following losses on Wall St at the end of last week on weak earnings from industrial companies.
The S&P/ASX 200 Index closed 29 points lower at 4,830 while on the futures market, the SPI200’s down 12.
To company news around this afternoon: Building products and sugar business CSR Ltd (ASX:CSR) has announced a $375 million equity raising after posting a loss of $155.6 million for the first half. Under the entitlement offer eligible shareholders will be offered the opportunity to acquire CSR shares at $1.66 each on the basis of 7 new shares for every 40 existing ordinary shares. The company says proceeds from the raising will be used to progress the demerger of its sugar business. CSR posted a $155.6 million net loss today after booking a $250 million accounting charge on the value of its glass business, Viridian. Shares in CSR are in a trading halt and last traded at $1.985.
Oil and gas explorer Beach Petroleum Ltd (ASX:BPT) says total production in the September quarter fell 7 per cent to 2.04 million barrels of oil equivalent due to the sale of Beach’s interest in the Tipton West coal seam gas asset. Oil production fell 6 per cent in the quarter, after recording a 42 per cent decline in production from the Gippsland Basin. However total oil and gas sales rose 6 per cent due to higher sales gas and condensate sales from inventory partly offset by lower production. Sales revenue for the period came to $125 million, with the average realized oil price, before hedging, of $80 a barrel. Beach Petroleum shares closed 1.23 per cent higher at $0.82.
Also making news: Argo Investments Ltd (ASX:ARG) has reaffirmed its guidance for operating profit after tax for the half year to December 31 to be between 25 to 28 per cent below last year, but that it is unlikely to be a representation of the company’s full year results due to signs of improving conditions in the market and economy.
Stuart Petroleum Ltd (ASX:STU) has agreed to sell its 50 per cent interest in the AC/P33 tenement in the Timor Sea for US$7.5 million to PTT Australasia. Following the transaction Stuart Petroleum will be debt free.
ANZ Bank (ASX:ANZ) has promised not to slug its 800,000 home borrowers with variable interest rate rises above official moves by the Reserve Bank.
And The Australian Government has approved China’s Yanzhou Coal Mining Company’s $2.9 billion takeover bid for coal miner Felix Resources Ltd (ASX:FLX).
In the best and worst performers: One of the only sectors not to close in the red today was the Telco Services index, which closed flat at 1,103 while the worst performing was the Real Estate Investment Trust index; which lost 12 points at 923.
The best performing stock in the S&P/ ASX200 was Energy World Corp shares rose 10.75 per cent to $0.515. Shares in Linc Energy and JB Hi-Fi shares also gained.
The worst performing stock was Sundance Resources with shares falling 5.88 per cent to $0.16. Shares in Elders and GPT Group also closed lower today.
In commodities, gold is trading at $1056.10 U.S an ounce and light crude is down 76 cents at $79.74 U.S a barrel.
