Australian stocks closed lower after a late sell off saw the market enter the red in the last hour as gains in gold and metal stocks were offset by losses in energy and financial stocks.
The S&P/ASX 200 Index closed 9 points weaker at 4,748 while on the futures market, the SPI200’s down 5.
The economic news of the day was Australian Bureau of Statistics data showing the unemployment rate rose to 5.8% in October from 5.7% in September.
To company news around this afternoon: Bluescope Steel (ASX:BSL) told shareholders at the annual general meeting that it still expects to post a small net loss for the half year to December and does not expect to pay a dividend for the period. The steel maker also said that the stronger Aussie dollar and softening prices will largely offset higher sales volumes from the start of the financial year. Bluescope Steel shares closed 4.62% lower at $2.89.
Leighton Holdings (ASX:LEI) announced that it will jointly develop a $900 million marine and jetty project at the Gorgon liquefied natural gas project in Western Australia. Leighton will partner with Italian firm Sapiem to construct the eco friendly project which is expected to be completed in 2013. Leighton Holdings shares lost 1% to $37.74.
Also making news: Caltex Australia’s (ASX:CTX) chief executive Julian Segal said today that it is looking for mergers and acquisitions to achieve growth including some niche opportunities in the energy sector. He also said the strong Aussie dollar is pressuring refiner margins but was optimistic about the long term outlook.
Biota Holdings (ASX:BTA) is buying U.K based drug discovery company Prolysis for $10.8 million. The deal is an all share purchase and includes two businesses that focus on new antibiotics for drug resistant infections and will greatly expand Biota’s new drug pipeline. Biota also confirmed at its annual meeting this morning that it has enough cash for a $20 million capital return to shareholders.
Taking a look at some of the stories covered in our earlier reports: Westfield Group (ASX:WDC) reported lower quarterly sales at its Australian shopping centres but said its retail assets have shown resilience through the downturn.
Centro Retail Group (ASX:CER) says it expects underlying profit for the year to June 30 2010 to be 20 per cent lower than the year before, and cash flow to fall 15 per cent.
In the best and worst performers: The highest percentage gaining sector at the close was the Materials index, up 94 points at 11,883. While the worst performing was the Utilities index; which lost 80 points to 4,147.
The best performing stock in the S&P/ ASX200 was AJ Lucas and shares rose 7.31 per cent to $4.99. Shares in Ausenco and Gindalbie Metals also gained.
The worst performing stock was Astro Japan Property as shares lost 5.05% to $0.47. Karoon Gas and Bluescope Steel shares also closed lower today.
In commodities, gold is trading at $1,120 U.S an ounce and since this morning light crude is down 12 cents at $79.16 U.S a barrel.
