The local share market has closed in a sea of red, taking a dive after investors were spooked by a fall in the Dow futures and fears China’s expected policy tightening could reduce demand for Australian resources.
The S&P/ASX 200 Index finished 34 points lower at 4,784, while on the futures market, the SPI200 is down 29.
In economic news: New ABS data has revealed personal finance commitments fell by a seasonally adjusted 1.5% to $6.9 billion in January, from just over $7 billion in December. Fixed loans, which make up 46% of personal finance commitments, dropped 2.1%, marking their fifth straight monthly fall since August. The weak lending finance figures point to a slowing of the economy and could spare borrowers an April interest rate rise.
To company news around this afternoon: Woolworths Ltd (ASX:WOW) says its foray into the telecommunications market is proving successful. Since launching its Everyday Mobile in August, the supermarket giant has seen a strong take-up from parents and their young children. Everyday Mobile chief Graeme Veitch says sales are so far ahead of target and there are plans to launch more new products in the near future. Everyday Mobile offers $2 SIM cards, unlocked mobile phone handsets and pre-paid plans for sale in Woolworths supermarkets, Big W stores and other outlets. Optus remains as the network provider for the product. Shares in Woolworths are down 1.02% at $28.21.
Oil and gas producer Drillsearch Energy Ltd (ASX:DLS) says it will divest or sell down its non-core assets to generate capital to invest in its projects in South Australia’s Cooper Basin. The company says it also has enough potential coal seam gas (CSG) resources to underpin several liquefied natural gas (LNG) projects. In an investor presentation today, the company declared its cash flow in calendar 2010 will improve sharply thanks to a recovery in oil prices. Earlier this month, Drillsearch reported a 360% increase in the size of the prospective gas resource potential of deep coal seams at its Western Cooper Unconventional Gas Project. Shares in Drillsearch closed 2.6% higher to finish at just under 8 cents.
Also making news: ASX Ltd (ASX:ASX) has appointed Peter Hiom as deputy CEO starting April 1st, adding to his current responsibilities as group executive in business development. Meanwhile, Colin Scully will retire from his role of group executive of operations at the end of November after more than 25 years with the company.
Engineering and property services company UGL Ltd (ASX:UGL) has won $110 million worth of contracts related to the banking, government and aviation sectors.
A Chinese government report into the failure of the $21.3 billion merger between Chinalco and Rio Tinto Ltd (ASX:RIO) has cleared the local mining giant and the Australian Government of blame.
And just a week after a former Macquarie Group Ltd (ASX:MQG) fund manager was caught trying to flee the country, another ex-employee has admitted to manipulating the market. Newton Chan has pleaded guilty to eight counts of market manipulation involving stock trades worth over $6.1 million.
In the best and worst performers: The majority of sectors closed in the red this afternoon. The sector with the smallest loss at close was the Energy index, down 31 points at 15,453. The worst performing sector was the Real Estate Investment Trust index; falling 11 points to 856.
The best performing stock in the S&P/ ASX200 was Charter Hall, shares gaining 3.73% to $0.695. Shares in Karoon Gas and Aquila also closed higher today. The worst performing stock was Envestra, shares fell 7.27% to $0.51. While shares in Isoft Group and Emeco Holdings also closed lower today.
In commodities, gold is trading at $1,105.20 U.S an ounce and light crude is down $0.43 to $80.81 U.S a barrel.
