The Australian share market has closed the session weaker today, dragged down by declines in the major miners, and a disappointing earnings outlook from top Telco Telstra. The banks managed to trim losses by the end of the session, with the market still mulling over NAB’s bid for AXA Asia Pacific Holdings.
The S&P/ASX 200 Index finished 20 points lower at 4,651 and is up 15 points on the week while on the futures market, the SPI200’s down 20.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index fell 163 points on the four trading days so far this week. The S&P500 Index lost 10, the NASDAQ also fell 10 points and the 100 index declined 14 points.
To company news around this afternoon: Australia and New Zealand Banking Group Ltd (ASX:ANZ) says it expects its level of provisions for doubtful debts to fall in the year ahead and more significantly in 2011. Retiring Chairman Charles Goode, speaking at the company’s annual general meeting told shareholders that net profits should be higher in the coming year. Mr Goode says there is good evidence that the Australian and New Zealand economies are recovering well and the Asian economies are showing strong growth. ANZ shares closed 1.11 per cent lower at $21.34. Mining giant Rio Tinto Ltd (ASX:RIO) has awarded a major mining contract in its Pilbara iron ore operations to a joint venture between an indigenous group and NRW Holdings. The $200 million contract to build, mine and transport iron ore from Rio’s Western Turner Syncline deposit has been awarded to the joint venture between the Eastern Guruma people and NRW. Rio Tinto shares closed 0.78 per cent weaker at $71.09.
Also making news: Port and rail company Asciano Group (ASX:AIO) has been selected as the preferred rail operator to transport magnetite from Xstrata Copper’s Ernest Henry Mining operation in QLD.
And Origin Energy Ltd (ASX:ORG), operator of the BassGass joint venture has announced that a final investment decision has been made for the $345 million Yolla Mid-Life Enhancement project. General Manager Paul Zealand says enhancing the offshore facilities represents the planned second phase of development for the Yolla gas field and a significant investment in the BassGass asset.
Taking a look now at some of the big stories this week: Westpac Banking Corporation (ASX:WBC) was under the spotlight for its hefty rate hike, the bank defending its 45 basis point rise saying that it would do no favours to anyone by offering mortgages at rates that it knows to be unsustainable.
NAB Ltd (ASX:NAB) trumped an offer by AMP Ltd (ASX:AMP) to acquire the Australian and New Zealand businesses of AXA Asia Pacific Holdings Ltd (ASX:AXA).
And Telstra Corporation (ASX:TLS) and Foster’s Group (ASX:FGL) both cut their earnings forecasts due to the impact of a higher Aussie dollar.
In the best and worst performers: The best performing sector at close was the Health Care index, which was up 125 points to 8,423. At the other end the Telco Services index closed 33 points lower at 1,173.
The best performing stock in the S&P/ ASX200 was Abacus Property Group and shares gained 7.41% to $0.435. Shares in Cudeco and West Australian Newspapers Holdings also improved.
The worst performing stock was PanAust and shares lost 6.96% to $0.535. Sundance Resources and Medusa Mining shares also closed lower today.
The Aussie dollar is currently buying 88.94 U.S cents and is down over 2 cents on the week. Gold is trading at $1,107.95 U.S an ounce and is down $6.55 on the week.
Finally, oil is up $0.31 at $72.96 U.S a barrel.
