The local share market has closed firmly in the red today investors exiting riskier assets on concern for the global economy following news of debt woes in Europe and weak economic data out of the US.
The S&P/ASX 200 Index finished 107 points lower at 4,514 and is down 55 points on the week while on the futures market, the SPI200’s down 118.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index fell 65 points on the four trading days this week. The S&P500 Index declined 11, the NASDAQ lost 22 points and the 100 index dropped 8 points.
To company news around this afternoon: Oil producer AED Oil Ltd (ASX:AED) is expanding its interests in South East Asia by acquiring stakes in Nations Petroleum’s oil and gas contract areas. AED Oil will own 100% of the Rombebai contract area in coastal Papua New Guinea, and have a 60% stake in the South Madura contract area, on Indonesia’s Madura island. The deal will cost the Melbourne-based company $1.73 million, along with 12 million of its shares. AED Oil Ltd shares closed 7.5% weaker at $0.555.
In a bid to improve its relations with China, mining giant Rio Tinto Ltd (ASX:RIO) has appointed a new managing director to head its business in the country. According to The Sydney Morning Herald newspaper, Ian Bauert, a fluent Mandarin speaker, will be in charge of the miner’s 160 employees in Beijing, Shanghai and Guangzhou. CEO Tom Albanese says China is one of Rio’s most important partners and the new role will allow the company to develop its relationship with the country. Rio Tinto Ltd shares closed 5.02% lower at $66.60.
Also making news: Drug developer Biota Holdings (ASX:BTA) has reported sales of $462 million and royalties of $32.6 million for the December 2009 quarter for its flu drug Relenza.
And iron ore miner Fortescue Metals Group Ltd (ASX:FMG) CEO Andrew Forrest has won an income tax dispute with the Australian Tax Office.
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 Health Care index, which was up 61 points at 8,333. At the other end the Energy index was the worst performer closing 548 points lower at 14,192.
The best performing stock in the S&P/ ASX200 was ResMed, shares rose 5.84% to $6.34. Shares in Commonwealth Property Office Fund and Transfield Services also improved.
The worst performing stock was PanAust and shares lost 9.28% to $0.44. St Barbara and Mt Gibson Iron shares also closed lower today.
The Aussie dollar is currently buying 86.65 U.S cents and is down just over 2 cents on the week.
Gold is trading at $1,064.20 U.S an ounce and is down $16.85 on the week.
Finally, oil is up $0.23 at $73.37 U.S a barrel.
