Market Wrap: Shares close slightly lower

Market Reports

The local share market has closed the session slightly in the red, despite clawing back some of its earlier losses, with investors remaining spooked by overseas sovereign debt worries.

The S&P/ASX 200 Index finished 6 points lower at 4,885, while on the futures market, the SPI200 is down 3 points.

In economic news: The Reserve Bank of Australia has released its latest six monthly review of the financial system, revealing bank loan losses may have peaked and profits are starting to grow again. The central bank says funding conditions for Australian banks have improved since its last review in September. But it warns interest rates will continue to rise towards more normal levels.

To company news around this afternoon: Leighton Holdings Ltd (ASX:LEI) has denied speculation it is likely to launch a counter bid for British engineering group Delta. Valmont Industries of the US has already made a $468 million offer for Delta, but the group is reportedly in talks with a third party, believed to be Leighton, about a competing offer. However, a spokesperson for Leighton Holdings says it is highly unlikely the company would bid for Delta, describing the rumour as unfounded. Shares in Leighton Holdings are 0.61% lower at $38.81.

AMP Ltd (ASX:AMP) chief Craig Dunn pocketed a 30% pay rise last year, according to the wealth manager’s annual report, released today. Mr Dunn, who took charge of the company at the start of 2008, was paid $5 million last year, including $2.1 million for short term bonus payments. He was paid $3.85 million the year before. AMP’s top nine executives, including Mr Dunn, were collectively paid $20.7 million last year, up from $15.8 million. The report also reveals the company is considering its position in relation to its rejected takeover offer for rival Axa Asia Pacific while the ACCC reviews the now-expired bid. Shares in AMP are down 1.11% at $6.26.

Also making news: Woodside Petroleum Ltd (ASX:WPL) CEO Don Voelte has denied reports the company wants to take over Santos so that it can tap into Queensland’s booming liquefied natural gas sector, saying there’s nothing to the rumours.

Port and rail operator Asciano Group Ltd (ASX:AIO) is on the hunt for a new CFO to replace Peter McGregor who has resigned to pursue other interests, less than two years after his appointment.

Washington H Soul Pattinson and Company Ltd (ASX:SOL) has reported an 87% fall in first half profit to $123.4 million.

And casino operator Crown Ltd (ASX:CWN) will spend $212 million to upgrade the VIP facilities at its Melbourne entertainment complex.

In the best and worst performers: The best performing sector at close was the Telco Services index, up 9 points at 1,060. The worst performing sector was the Industrials index; down 36 points to 3,906.

The best performing stock in the S&P/ ASX200 was Energy World Corp, shares rose 56.52% to $0.54. Shares in Iluka Resources and Santos also closed higher today.

The worst performing stock was McMahon Holdings, shares are down 5.33% to $0.71, while shares in Perseus Mining and Platinum Asset Management also closed lower today.

In commodities, gold is trading at $1,088.80 U.S an ounce and light crude is down $0.12 to $80.49 U.S a barrel.

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