The Australian share market closed lower today weighed down by the major miners like BHP and Rio Tinto and following news that China may make moves to further tighten bank lending after data showed the economy grew 8.7% in 2009. The news causing concern for the global economic recovery.
The S&P/ASX 200 Index finished 41 points lower at 4,827 while on the futures market, the SPI200’s down 36.
In economic news: According to the Westpac/Melbourne Institute survey of consumer inflationary expectations, consumers believe inflationary pressures dropped to 3.5% in January from 3.6% in December.
And the Westpac/Melbourne Institute’s unemployment expectations index plummeted 15.5% in January to a read of 100.55 points. This compares to a rise in both December and November.
To company news around this afternoon: Iron ore miner Fortescue Metals Group Ltd (ASX:FMG) shipped a total 9.08 million tonnes of iron ore in the December quarter up from 6.28 million tonnes a year ago however a drop from the 9.526 million tonnes shipped in the September quarter. The company mined 9.15 million tonnes of ore in the quarter, up from 8.46 million tonnes the year before but down on the 10.3 million tonnes in the previous quarter. Fortescue also says it shipped 170,000 tonnes to an Asian steel mill, its first export outside of China. The miner raised its production guidance for the year to 40 million tonnes from 35 million tonnes. Fortescue Metals Group shares closed 2.92% weaker at $4.99.
CBH Resources Ltd (ASX:CBH) has agreed to sell a 50% interest in the Rasp project at Broken Hill to major shareholder Toho for $57.5 million. The two companies will form a joint venture for the ownership and development of the Rasp project. CBH says it will also place 50 million shares to Toho at 20 cents a share to raise $10 million and intends to offer noteholders $500 in cash and 1,800 CBH share's per note to acquire all of its outstanding notes. CBH Resources shares closed 14.81% higher at $0.155.
Also making news: New Zealand based resins and chemicals maker Nuplex Industries Ltd (ASX:NPX) has raised its full year earnings outlook, saying it now expects earnings before interest, tax, depreciation and amortisation of between NZ$120 million and NZ$135 million from previous guidance of between NZ$110 million and NZ$120 million.
Neptune Marine Services Ltd (ASX:NMS) says it anticipates that normalised net profit after tax for the first half of 2010 will be in the range of breakeven to a loss of $1 million due to a sharper than anticipated decline across both the US and South East Asian markets.
Oil and gas explorer Santos Ltd (ASX:STO) says it produced 54.4 million barrels of oil equivalent in 2009, in line with guidance.
And takeover target AXA Asia Pacific Holdings Ltd (ASX:AXA) says it expects to report profit after tax of $675 million for the year to December 31, 2009.
In the best and worst performers: Majority of sectors are in the red at close, however the only sector that closed in the black today was the Telco Services index, which was up 13 points to 1,160. The sector with the biggest loss at close was the Materials index; which fell 286 points to 12,600.
The best performing stock in the S&P/ ASX200 was Macquarie CountryWide. Shares gained 3.57% to $0.58. Shares in Virgin Blue and Prime Infrastructure Group also improved.
The worst performing stock was Aquila Resources, shares lost 7.87% to $9.95. Aquarius Platinum and AWE shares also closed lower today.
In commodities, gold is trading at US$1,114.50 an ounce and light crude is up 11 cents at $77.85 U.S a barrel.
