Australian shares lost ground today after comments by U.S. Federal Reserve Chairman Ben Bernanke stoked fears of a slow U.S. economic recovery. Local healthcare and telecommunications stocks declined while metal stocks rebounded today.
The S&P/ASX 200 Index finished 6 points lower at 4,671 while on the futures market, the SPI200’s down 4.
The economic news of the day was the ABS saying that Australia’s account deficit was $16.18 billion in the third quarter.
And the NAB’s monthly business survey showed its measure of business confidence rose 3 points to 19 in November.
To company news around this afternoon: Oil Search (ASX:OSH) and Santos (ASX:STO) said their joint venture partners on the Papua New Guinea liquefied natural gas project have decided to proceed with the development, dependant on sales contracts and financing agreements going ahead. Oil Search said it would have a 29% interest in the project as a result of the joint venture. The project is expected to begin producing in late 2013/early 2014 and will more than double Papua New Guinea’s GDP. Santos shares closed 0.47% lower at $14.68 while Oil Search shares lost 1.02% at $5.84.
BHP Billiton's (ASX:BHP) takeover attempt for United Minerals Corporation (ASX:UMC) looks close to being successful after United Minerals announced today that it has cancelled a one-for-10 rights issue, which was one of BHP’s conditions for the takeover going ahead. BHP’s bid for United Minerals happened on October 19, ten days after the announcement of the rights issue which would have secured a Chinese investor. United Minerals said today that all money will be returned to investors that had applied for shares. BHP Billiton’s shares finished the day 1.08% higher at $41.05.
Also making news: Takeover target AXA Asia-Pacific Holdings (ASX:AXA) today denied reports that the company's independent directors may have met to discuss getting a higher bid. Yesterday the stock gained after a report in the Australian Financial Review started the rumour.
Rail and ports operator Asciano Group (ASX:AIO) has signed a 10-year coal haulage contract with a joint venture of Brazilian iron ore giant Vale and Aquila Resources.
Some of the stories covered in our earlier reports include: Westpac (ASX:WBC) CEO Gail Kelly has come out defending the bank’s decision to increase rates by 45 basis points, nearly double the RBA’s 25 basis point rise, saying it is not the “Jetstar” of the banks.
Rio Tinto (ASX:RIO) has sold its 50% stake in Hydrogen Energy International, which owns an interest in the Hydrogen Power Abu Dhabi project, to BP and instead has turned its focus to a project in California.
In the best and worst performers: The best performing sector today was the Real Estate Investment Trust index, which was up 5 points to 847. The worst performing by percentage points was the Healthcare index; which lost 83 points to 8,366.
The best performing stock in the S&P/ ASX200 was Paperlinx as it announced it was shutting a manufacturing plant in Tasmania and cutting 252 jobs and shares gained 8.82% to $0.555. Shares in Elders and Asciano also improved.
The worst performing stock was Energy World Corporation and shares lost 5.13% to $0.37. Mt Gibson Iron and St Barbara shares also closed lower today.
In commodities, gold is trading at $1,162.10 U.S an ounce and since this morning light crude is up 25 cents at $74.18 U.S a barrel.
