The Australian market closed lower despite the market gaining as it opened. Stocks were pressed by a report from the Australian Bureau of Statistics showing that businesses investment slipped unexpectedly last quarter. Financial and property stocks were sold off today.
The S&P/ASX 200 Index closed 14 points lower at 4,709 while on the futures market, the SPI200’s down 17.
To company news around this afternoon: BHP Billiton (ASX:BHP) chief executive Marius Kloppers said at the company’s annual general meeting today that he expects Chinese growth to continue and to need Australian resources. The mining giant also dismissed speculation that Rio Tinto was trying to get out of their proposed $116 billion joint venture for iron ore assets in the Pilbara and said they were close to a binding agreement. BHP Billiton shares closed 1.48% higher to $41.80.
Virgin Blue (ASX:VBA) expects to return to profitability next year after the most challenging year in its nine year history. Chairman Neil Chatfield said there are encouraging signs of domestic recovery and also said that because of cost control and an improving balance sheet, the airline is currently profitable and ready to take advantage of an improving market. Virgin Blue shares are 1.94% higher at $0.525.
Woolworths (ASX:WOW) told shareholders at its annual general meeting today that changes in consumer behavior and rising interest rates are creating some uncertainty as chief executive Michael Luscombe summarized the current defining feature of Australian consumers as ‘frugal’. The retailer maintained its sales and earning guidance for the year.
Beach Petroleum (ASX:BPT) says its full-year production will remain stable and gave upbeat forecasts for oil output in Egypt and Tanzania, as well as its Cooper Basin assets in Australia.
Some stories covered in our earlier reports include: Mirvac Group (ASX:MGR) shareholders have approved the company’s takeover of Mirvac Real Estate Investment Trust (ASX:MRZ).
Tower Australia Group (ASX:TAL) profit for the year dropped 32% to $46.4 million largely to investment market impacts and higher amortisation charges.
In the best and worst performers: The best performing sector was the Materials index, which was up 102 points to 12,384. The worst performing by percentage points was the Real Estate Investment Trust index; which lost 13 points to 873.
The best performing stock in the S&P/ ASX200 was Independence Group and shares rose 5.99 per cent to $4.78. Shares in Beach Petroleum gained on the upbeat production outlook and St Baraba shares also improved.
The worst performing stock was Tower Australia as it reported lower annual profit and shares lost 8.54% to $3.00. Cudeco and Macquarie Media shares also closed lower today.
In commodities, gold is trading at $1,194.15 U.S an ounce and since this morning light crude is down 63 cents at $77.33 U.S a barrel.
