A slump in resource stocks led by mining giants BHP and Rio Tinto on weaker commodity prices and concerns about the US economic recovery, along with the prospect of further rate rises, dragged on the market today with Aussie stocks closing firmly in the red. Stocks posting their worst monthly performance since November 2008, according to Reuters.
The S&P/ASX 200 Index finished 104 points lower at 4,570 and is down 181 points on the week while on the futures market, the SPI200’s down 102.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index fell 53 points on the four trading days this week. The S&P500 Index declined 7, the NASDAQ lost 26 points and the 100 index dropped 24 points.
To company news around this afternoon: Oil and gas producer Origin Energy Ltd (ASX:ORG) has reported a 2% increase in production and 16% rise in sales revenue for the December quarter compared to the same quarter the year before. However for the half year to December 2009 production fell 14% and sales revenue dropped 9% as a result of the 50% dilution of the company’s interest in Australia Pacific LNG. Executive director of finance and strategy Karen Moses says the exploration and production business has delivered production in line with seasonal and operational expectations. Origin Energy shares closed 0.5% weaker at $16.02.
Macquarie Group Ltd (ASX:MQG) says it is in discussions with Charter Hall over the potential sale of parts of Macquarie’s real estate funds management platform. The transaction may also include the managers of some of its real estate investment trust subsidiaries. Macquarie says at this stage the potential acquisition is incomplete and subject to a number of conditions and there is no certainty that any acquisition will proceed. Shares in Macquarie Group closed 1.69% lower at $50.16.
Also making news: Coal miner Macarthur Coal Ltd (ASX:MCC) says it will no longer proceed with its bid to acquire Noble Group’s 79.9% stake in Donaldson Coal Holdings for $185.8 million. However Macarthur says it will acquire Noble’s stake in the Middlemount project in Queensland and proceed with its offer for Gloucester Coal Ltd (ASX:GCL).
And Australian Worldwide Exploration Ltd (ASX:AWE) has reduced its production guidance for fiscal 2010 to 6.2 million barrels of oil equivalent primarily due to a further extension of the BassGas maintenance shutdown and work-over project in addition to some production decline in the onshore Perth Basin.
In the best and worst performers: Majority of sectors closed in the red today, one of the only sectors not to close in the red was the Utilities index, which was up 9 points at 4,173. At the other end the Materials index was the worst performer closing 411 points lower at 11,617.
The best performing stock in the S&P/ ASX200 was Macquarie Atlas, shares rose 8.88% to $0.92. Shares in Prime Infrastructure Group and Southern Cross also improved.
The worst performing stock was Platinum Australia and shares lost 9.78% to $1.015. PanAust and Macarthur Coal shares also closed lower today.
The Aussie dollar is currently buying 89.06 U.S cents and is down just over 1 cent on the week.
Gold is trading at $1,082.25 U.S an ounce and is down $10.35 on the week.
Finally, oil is up $0.15 at $73.79 U.S a barrel.
