The local share market has closed in a sea of red this afternoon, with resource stocks like BHP and RIO taking a dive and most other sectors sinking into negative territory.
The S&P/ASX 200 Index finished 42 points lower at 4,830, while on the futures market, the SPI200 is down 38.
In economic news: Sales of new motor vehicles fell for a second straight month in February, slipping 1.9% from January in the wake of the federal government ending its 50% tax break on business investment at the end of last year. ABS data shows just over 85,000 vehicles were sold on a seasonally adjusted basis in February, down from 86,657 in the month before.
And an annual poll of CEOs from Australia’s major economic sectors shows many expect improving economic activity this year, but forecast a weaker recovery in the construction industry. The Australian Industry Group (Ai Group) survey found those interviewed believe rising consumer confidence in employment trends and income growth, as well as demand from China, will drive the local economy.
To company news around this afternoon: Drugs maker Sigma Pharmaceuticals Ltd (ASX:SIP) has postponed the release of its full year financial results by over a week as speculation mounts that the company may post a $150 million loss. The company was expected to release its results tomorrow, but says the board needs more time to finalise the accounts for the year ending January 31, 2010. The results are now scheduled to be made public on or before March 31. On Friday, Sigma said it might not pay a dividend in the second half of its fiscal year and was renegotiating the terms of its banking covenants due to increased market pressures leading to a fall in its cash flow forecast. Shares in Sigma Pharmaceuticals have been in a trading halt since February 25 pending the revised earnings guidance. They last traded at $0.90.
Junior explorer Moly Mines Ltd (ASX:MOL) is poised to secure $546 million in debt finance for its Spinifex Ridge molybdenum project in Western Australia. China’s Hanlong Group, which became a strategic partner of Moly Mines in October, will arrange the financing, most of which will be used to retire the company’s existing debt. The remainder will go towards developing the $600 million Spinifex Ridge project. The Australian Financial Review reports that representatives from one of China’s biggest banks will begin due diligence today for the financing of Spinifex Ridge. The company has made a number of unsuccessful attempts to finance the project dating back to September 2007 when it completed the feasibility study. Moly has since halved the size of the development to reduce the capital required by over $500 million. Shares in Moly Mines fell 1.72% to $0.855.
Also making news: Internet and mobile media company GoConnect Ltd (ASX:GCN) will acquire the businesses of Cashmere Media Pty Ltd and PLW Entertainment Ltd in return for giving them a 15% stake in the company. Shareholders will vote on the acquisitions, which would result in the creation of Australia’s largest independent music entertainment company, in early May.
Property developer Lend Lease Group Ltd (ASX:LLC) has announced the appointment of Robert McNamara as CEO of its American division.
Retail fashion chain operator Premier Investments Ltd (ASX:PMV) has reported a 13.7% drop in first half profit to $42.4 million.
And Arrow Energy Ltd (ASX:AOE) has recommended its shareholders accept an increased takeover offer of $3.44 billion from Royal Dutch Shell and PetroChina.
In the best and worst performers: The majority of sectors have closed in negative territory this afternoon. The sector with the smallest losses at close was the Healthcare index, down 15 points at 8,925. The worst performing sector was the Materials index; falling 185 points to 12,525.
The best performing stock in the S&P/ ASX200 was FKP Property Group, shares rose 3.62% to $0.715. Shares in Elders and Sundance Resources also closed higher today.
The worst performing stock was St Barbara, shares are down 5.36% to $0.265, while shares in Incitec Pivot and Eastern Star Gas also closed lower today.
In commodities, gold is trading at $1,108.95 U.S an ounce and light crude is down $0.43 to $80.25 U.S a barrel.
