The Australian market wiped out early gains and closed lower as profit taking saw resources stocks being sold off, along with property and telecommunication companies.
The S&P/ASX 200 Index closed 32 points lower at 4,685 while on the futures market, the SPI200’s down 26.
To company news around this afternoon: Rio Tinto (ASX:RIO) has agreed to buy and transport up to 1.5 million tonnes of iron ore each year from Iron Ore Holdings (ASX:IOH). The mining giant also said it is looking at buying one of Iron Ore Holdings’ undeveloped mines after it signed an exclusivity deal. Rio’s agreement to buy iron ore from the small miner could be a move to avoid having to open up the railways in the Pilbara to third parties as BHP and Rio both appeal court rulings on the issue. Shares in Iron Ore Holdings jumped 14.53% while Rio Tinto shares closed 2.56% lower at $71.89.
Woodside Petroleum (ASX:WPL) reaffirmed its production guidance for 2009 and expects to produce between 81 and 86 million barrels of oil equivalent but also told investors that output would decline in 2010 after the sale of some assets. The oil and gas company also said it expects to make a final decision about the Browse gas joint venture project in 2011 and said it is on track to secure funding for next year. Woodside Petroleum shares finished the session 0.8% higher at $49.10.
Also making news: Premier Investments (ASX:PMV) told shareholders today that it expects fiscal year 2009/2010 earnings before interest and tax growth to be in line with market expectations but also said it is extremely cautious about the economic outlook. Chairman Solomon Lew said the company is waiting for more information before deciding whether to sell its Breville investment into the $322 million GUD takeover bid.
Brickworks (ASX:BKW) said it can see signs of a pickup in construction and has forecast a solid performance in the current fiscal year because of government spending on construction. First quarter building products sales revenue grew 2.7% compared to the previous year.
Taking a look at some of the stories covered in our earlier reports: Harvey Norman said sales from franchised Harvey Norman stores rose 7.7% to $1.93 billion for the period from 1st July 2009 to 22nd November compared to the same period last year.
Project development and contracting company Leighton Holdings Ltd (ASX:LEI) is to develop and sell an office tower in the CBD of Brisbane.
In the best and worst performers: The only sector recording gains was the small Information Technology index, which was up 3 points to 623. The worst performing by percentage points was the Real Estate Investment Trust index; which lost 12 points to 878.
The best performing stock in the S&P/ ASX200 was Mincor Resources and shares rose 4.28 per cent to $2.07. Shares in Molopo Energy and FKP Property Group also improved.
The worst performing stock was Elders as shares lost 6.06% to $0.155. Commonwealth Property Office Fund shares lost ground as it completed a $100 million institutional equity placement and SP Ausnet shares also closed lower today.
In commodities, gold is trading at $1,168.80U.S an ounce and since this morning light crude is up 16 cents at $77.72 U.S a barrel.
