The local share market has closed lower this afternoon, led by a fall in mining stocks after economic growth worries sent commodity prices tumbling.
The S&P/ASX 200 Index finished 70 points lower at 4,649 while on the futures market, the SPI200 is down 78 points.
To company news around this afternoon: A recovery in global steel production has helped Macarthur Coal Ltd (ASX:MCC) deliver a profit of $39.6 million for the first half of fiscal 2010. However, the result is weaker than the profit of $106.9 million the company recorded for the same period a year before. The coal miner says sales revenue declined 24% to $318.5 million as a result of lower sales prices, partly offset by the impact of higher sales tonnages. CEO and managing director Nicole Hollows says the company is on track to meet its forecasted sales tonnage of 4.8 to 5 million tonnes for fiscal 2010. Macarthur Coal shares closed 0.87% weaker at $10.31.
Gindalbie Metals Ltd (ASX:GBG) has struck a deal with its Chinese joint venture partner, Ansteel, to target new resource development opportunities outside of Gindalbie’s flagship Karara iron ore project. Under a non-binding memorandum of understanding, the partners will work together to identify potential projects in the carbon steel materials sector, as well as developing pellet plants and steel mills. Ansteel, China’s second biggest steel producer, has already invested a total of $573 million into Gindalbie and the Karara project, near Geraldton in Western Australia. And it recently signed an agreement with the Western Australian Government to undertake a feasibility study into the construction of an integrated iron and steel plant and rolling mill at the Oakajee industrial estate near Geraldton. Shares in Gindalbie Metals closed 1.47% lower at $1 and a half cent.
Also making news: BHP Billiton Ltd (ASX:BHP) chairman Don Argus has confirmed he will hand over the reins to Jac Nasser at the end of next month, after a decade in the position.
And thanks to strong growth in coal transport, rail and ports operator Asciano Ltd (ASX:AIO) has delivered a first-half profit of $79.1 million, reversing a $93.4 million loss from the same period a year before.
The Commonwealth Bank of Australia Ltd (ASX:CBA) has reportedly agreed to pay victims of the collapsed Storm Financial a possible $200 million in compensation.
And financial services company Suncorp-Metway Ltd (ASX:SUN) has reported a 41% rise in first half profit to $364 million today, however the company cut its dividend in an effort to preserve cash.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 7 points at 872. While the worst performing sector was the Materials index; which fell 303 points at 11,936.
The best performing stock in the S&P/ ASX200 was Karoon Gas, shares gained 8.49% to $7.41. Shares in Transpacific and St Barbara also improved.
The worst performing stock was Ausenco, shares fell 8.78% to $3.95. Shares in Suncorp-Metway and Paladin Energy also closed lower today.
In commodities, gold is trading at $1,105.70 U.S an ounce and light crude is up 39 cents at $79.25 U.S a barrel.
