Australian stocks lost ground today despite a generally positive session on Wall Street overnight. The Aussie market was higher as it opened but steadily declined for the rest of the day. Locally the telecommunications, property trust and materials sectors were a drag.
The S&P/ASX 200 Index closed 32 points weaker at 4,508 while on the futures market, the SPI200’s down 9.
In economic news, the Federal Chamber of Automotive Industries said that new vehicle sales have increased 2.2 percent in October compared to a year ago. It was the first gain in 16 months.
However, the economic news of the day was: The Australian Bureau of Statistics saying that the Australian balance of goods and services was a deficit of $1.849 billion in September. Exports and imports both increased 5% in the month and the result was better than the $2.15 billion deficit economists were expecting.
To company news around this afternoon: Centrex Metals (ASX:CXM) has received approval from the Foreign Investment Review Board to proceed with its joint venture with Wuhan Iron and Steel Corporation. The $271 million joint venture deal involves Wuhan Iron and Steel paying $186 million to Centrex for a 60% stake in the iron ore rights of five of Centrex’s South Australian iron ore tenements. Centrex Metals shares finished the session 10.94% higher at $0.71.
Transurban Group (ASX:TCL) has rejected a takeover offer from Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan. Transurban said the proposal was highly conditional and incomplete and would have involved a change of control of the company through a scheme of arrangement. Transurban has however left the door open to further discussions and shares jumped 19.36% to $5.24 today.
Also making news: BHP Billiton (ASX:BHP) has temporarily halted the construction of a new rail line in the Pilbara region because of safety concerns it has with the contractor, Macmahon Holdings. BHP said it expected work to resume within a few days.
Pacific Enviromin (ASX:PEV) announced it will acquire all existing shares of Area Coal to expand its Queensland mining interests.
Taking a look at some of the stories covered in our earlier reports: Myer Holdings (ASX:MYR) and rival David Jones (ASX:DJS) both reported higher first quarter sales. Myer said sales grew 5.2 percent and it was on track to meet its full-year forecast. David Jones said sales rose 2.2 percent but it was too early to provide updated guidance and shares in both retailers declined.
Leighton Holdings (ASX:LEI) reported a 10 percent jump in first quarter revenue and maintained its full year profit forecast but shares lost mild ground.
In the best and worst performers: The best performing sector at the close was the Industrials index, up 20 points at 3,709. The worst performing by percentage points was the Telecommunications index; which lost 22 points to 1,091.
The best performing stock in the S&P/ ASX200 was Transurban as it rejected a takeover approach and shares jumped 19.36 per cent to $5.24. Shares in Extract Resources and Boart Longyear also gained.
The worst performing stock was Virgin Blue as shares lost 6.25% to $0.45. Paperlinx and Transpacific Industries shares also closed lower today.
In commodities, gold is trading at $1,088.60 U.S an ounce and since this morning light crude is down 62 cents at $79.78 U.S a barrel.
