Australian shares fell today following U.S. stocks which declined overnight on disappointing earnings reports. Locally healthcare, material and energy shares dragged on the market.
The S&P/ASX 200 Index finished 33 points lower at 4,638 while on the futures market, the SPI200’s down 39.
The economic news of the day was the Australian Bureau of Statistics saying that the nation’s balance of goods and services for October showed a deficit of $2.379 billion.
The Bureau also showed that housing finance fell 1.4% in October.
To company news around this afternoon: Caltex Australia (ASX:CTX) said it expects its calendar year 2009 operating profit to be between $300 and $325 million and said results were affected by costs associated with closing an oil refinery in Kurnell, Sydney. Caltex also said the outlook for the first half of 2010 was weak and warned that refining margins will continue to be squeezed. Caltex shares finished the day 4.11% lower at $8.64.
Macquarie Radio Network (ASX:MRN) has signed a heads of agreement with Pacific Star Network to expand into the Melbourne market. Macquarie Radio owns Sydney radio stations 2GB and 2CH and Melbourne based Pacific Star owns SEN which broadcasts AFL matches and easy music station 3MP. The two companies will, subject to regulatory approval, jointly produce and supply radio shows to the Melbourne market. Macquarie Radio Network shares are in a trading halt and last traded at $0.72.
Also making news: Santos (ASX:STO) said today that gas demand could triple in eastern Australia over the next 10 years. Vice president for eastern Australia Mark Macfarlane also said that gas would increasingly be used as a cleaner alternative to coal in power stations.
Shares in Stanmore Coal (ASX:SMR) debuted on the stock exchange today and closed at double their offer price of $0.20 a share in solid volumes.
Taking a look at some of the stories covered in our earlier reports: BHP Billiton (ASX:BHP) said it will sell its idle Ravensthorpe nickel mine to Canada's First Quantum . Shares in Minara Resources (ASX:MRE) declined because it lost out to First Quantum in the bidding for Ravensthorpe. In other BHP news, the European steel industry has voiced its concerns over BHP and Rio’s iron ore joint venture and wants regulators to reject the deal.
A joint venture between Transfield Services Ltd (ASX:TSE) and WorleyParsons Ltd (ASX:WOR) has won a $76 million contract with Shell Philippines Exploration.
In the best and worst performers: The best performing sector today was the Real Estate Investment Trust index, which was up 8 points to 855. The worst performing by percentage points was the Healthcare index; which lost 126 points to 8,240.
The best performing stock in the S&P/ ASX200 was Cudeco and shares gained 5.51% to $5.17. Shares in Karoon Gas and Extract Resources also improved.
The worst performing stock was Alesco as it said it expects its 2010 half year earnings before interest, tax, amortization and significant items to be around $30 million and shares lost 8.74% to $4.49. Avoca Resources and St Barbara shares also closed lower today.
In commodities, gold is trading at $1,136.30 U.S an ounce and since this morning light crude is up 66 cents at $73.28 U.S a barrel.
