The local share market has closed the session flat this afternoon, with the property sector hit by losses and investors thrown by disappointing housing finance figures.
The S&P/ASX 200 Index finished at 4,820, while on the futures market, the SPI200 is down 1 point.
In economic news: Demand for home loans slumped by 7.9% in January – the biggest fall in a decade – after economists had predicted a 2% rise. According to the ABS, the result follows a revised 5.1% drop in December. The RBA has warned that house prices will keep rising until housing construction accelerates to meet Australia’s population growth.
To company news around this afternoon: Explosives maker Orica Ltd (ASX:ORI) says it will lose hundreds of millions of dollars following a court ruling against its appeal over a dispute with the tax office. The Federal Court today only partially allowed the company’s appeal against the ATO’s amended assessment of the sale of Orica’s pharmaceutical business in 1998. The effect of the ruling means that the ATO’s claim has, for the most part, been upheld. The company says the ruling is likely to have an adverse profit and loss impact of about $192 million. And as only half of the amount owing on the amended assessment was previously paid, Orica may need to pay a further $126 million. The company has 21 days to appeal the decision and says it is considering its position and seeking further legal advice. Shares in Orica closed 1.2% higher at $25.31.
Southern Cross Media Australia Pty Ltd has signed a deal with a consortium of banks for a refinanced facility of $375 million in place of its existing business level debt facility. Southern Cross Media Group Ltd (ASX:SXL) says the agreement has been signed with six banks, including National Australia Bank, ANZ and Macquarie Bank, for a four-year term. Southern Cross Media Australia plans to close the deal today, and says it will position the group with a conservative and sustainable level of debt. Meanwhile, the company has also announced the appointment of Stephen Kelly to replace Liam Buckley as CFO upon internalisation. Shares in Southern Cross Media Group closed 3.9% higher at $2.13.
Also making news: Wealth manager AMP Ltd (ASX:AMP) has appointed Boe Pahari to head the Asia Pacific infrastructure division of AMP Capital Investors. Starting on March 22, Mr Pahari will be in charge of expanding investment activities in Australia and the Asia Pacific.
Shares in Alesco Corporation Ltd (ASX:ALS) have taken a dive after the building products supplier downgraded its full-year earnings guidance and warned of more write downs in its water products business.
Atlas Iron Ltd (ASX:AGO) and junior iron ore developer Aurox Resources (ASX:AXO) are set to merge via a scheme of arrangement. Atlas Iron is seeking to acquire Aurox in a $143 million scrip offer to secure additional port capacity as it ramps up production to meet Chinese demand.
And gaming machine maker Aristocrat Leisure Ltd (ASX:ALL) has announced the retirement of three of its longstanding board members, including Chairman David Simpson.
In the best and worst performers: The best performing sector at close was the Telco Services index, up 26 points at 1,027. The worst performing sector was the Real Estate Investment Trust index; falling 20 points at 872.
The best performing stock in the S&P/ ASX200 was Cudeco, shares gaining 12.98% to $4.70. Shares in PanAust and Biota Holdings also closed higher today.
The worst performing stock was Alesco Corporation, shares plunged 31.58% to $3.12. Hills Industries and Nufarm shares also closed lower today.
In commodities, gold is trading at $1,125.10 U.S an ounce, and light crude is up 11 cents at $81.60 U.S a barrel.
