The Australian share market closed 2% lower today following a weak lead from international markets overnight and reactions to President Obama’s proposal to prevent the major banks from taking excessive risks.
The S&P/ASX 200 Index finished 77 points lower at 4751 and is down 149 points on the week while on the futures market, the SPI200’s down 94.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index fell 220 points on the four trading days this week. The S&P500 Index declined 20, the NASDAQ fell 22 points and the 100 index dropped 14 points.
Looking at economic news: The ABS international trade prices indexes for the December quarter were released. The Import Price Index increased by 10.8% in the December quarter 2008 and decreased by 3.0% in the September quarter 2009.
To company news around this afternoon: Australia’s third largest iron ore producer, Fortescue Metals Group Limited (ASX:FMG) has shipped 9.1 million tonnes of iron ore in the December quarter, exceeding previous guidance. The company shipped 31% less iron ore in calender 2008, although the miner’s output retreated 5% from the September quarter output. On a yearly basis, Fortescue produced 36.6 million tonnes, while the company also flagged a rise in the contract price of iron ore by 25%-50% from April 1st. Fortescue Metals shares closed 3.61 per cent lower at $4.81.
And Melbourne based OceanaGold Corporation (ASX:OGC) has reported fourth quarter gold sales of 72,140 ounces, bringing the total for fiscal 2009 to 300,044 ounces. This is a record result for the company and a 14% increase over calender 2008. Operational costs for the fourth quarter were $US35 million, while exploration spending was $US1.9 million, with the majority attributed to the brownfields exploration program in New Zealand.Production guidance for the 2010 year has been set at 270,000 to 290,000 ounces of gold at cash costs of $US455-495 an ounce. Shares in OceanaGold closed 4.5 per cent lower at $1.91.
Also making news: Macquarie Infrastructure Group (ASX:MIG) has reduced the value of its portfolio for the half by 0.3% to $5.08 billion as at 31st December.
And Transpacific Industries (ASX:TPI) forecast EBITDA of between $197 to $200 million and earnings before interest and tax between $115 to $118 million.
Taking a look now at some of the big stories this week: Arthur Hood resigned from his position of CEO of Lihir Gold (ASX:LGL) with the company later reporting a 27% jump in gold production in 2009 to 1.12 million ounces.
And Australian Agricultural Company Limited (ASX:AAC) expects to post a loss in the range of $53-$60 million for fiscal 2009.
In the best and worst performers: All indexes closed in the red today, however the best performing sector was the Healthcare index, which was down 21 points to 8328. At the other end the Materials index closed 274 points lower at 12,326.
The best performing stock in the S&P/ ASX200 was Oz Minerals and shares rose 3.46% to $1.195. Shares in Carsales.com and Envestra also improved.
The worst performing stock was Sundance Resources and shares lost 6.67% to 14 cents. Aus Agricultural and Beach Energy shares also closed lower today.
The Aussie dollar is currently buying 90.24 U.S cents and is down just over 2 cents on the week.
Gold is trading at $1,092.60 U.S an ounce and is down $39.30 on the week.
Finally, oil is down $0.26 at $75.82 U.S a barrel.
