The Australian share market has closed the session firmly in the red, with declines across all industry sectors after new data on retail spending failed to meet expectations.
The S&P/ASX 200 Index closed 41 points lower at 4,876, while on the futures market, the SPI200 is down 48 points.
In economic news: Home prices rose a further 1.4% in February, despite interest rate rises aimed at quashing unsustainable growth. A report by RP Data-Rismark shows the median Australian house price increased to $455,000 last month, on the back of January’s 2% gain. Home prices are now up 12.7% on February last year.
To company news around this afternoon:Shares in Sigma Pharmaceuticals Ltd (ASX:SIP) plunged this afternoon after the troubled company posted a full year loss of $389 million. The prescription drug maker says the result was weighed down by $424.2 million in writedowns stemming from competitive pressures in the generic drugs market. The poor result compares to an $80.1 million profit the previous year. Sigma shares have been suspended for almost five weeks and last traded on February 24, when they closed at 90 cents. The company has not paid a dividend, confirming guidance issued on March 22, when it revealed its full-year report had been delayed amid talks with lenders and auditors prompted by a poor performance. Shares in Sigma Pharmaceuticals closed 48.33% lower at $0.465.
Macarthur Coal Ltd (ASX:MCC) has rejected a $3.3 billion bid by US giant Peabody Energy because it thinks the takeover offer is too cheap. Peabody offered to acquire all the shares in Macarthur for $13 per share, but Macarthur says the terms outlined in the indicative proposal are not in the best interests of shareholders. Chairman Keith DeLacy says the offer is highly conditional and does not fully value Macarthur and its significant growth prospects. Mr DeLacy says he believes there are more benefits associated with the company’s proposed acquisitions of Gloucester Coal and Noble’s interest in the Middlemount joint venture. Macarthur is in the process of taking over Gloucester Coal, which has recommended shareholders accept the company’s offer of $668.81 million. Shares in Macarthur Coal closed 16.21% higher at $14.05.
Also making news: Ten Network Holdings Ltd (ASX:TEN) has reported a first half profit of $58.6 million, reversing an $80 million loss for the same period a year before. Underlying profit for the six months to February 28 rose a more modest 3% to $58.7 million.
The financial planning arm of the Commonwealth Bank Ltd (ASX:CBA) is being sued by seven of its investors who claim they lost millions of dollars as a result of receiving allegedly negligent advice.
After months of negotiations, National Australia Bank Ltd (ASX:NAB) has agreed to acquire the Australian and New Zealand businesses of AXA Asia Pacific in a deal worth $4.6 billion.
And QBE Insurance Ltd (ASX:QBE) says it is in talks with various parties regarding a number of acquisitions and is on track to meet its full year insurance profit margin.
In the best and worst performers: The majority of sectors closed in negative territory, but the sector with the smallest loss at close was the Energy index, down 34 points at 15,909. The worst performing sector was the Materials index, closing 162 points lower at 12,806.
The best performing stock in the S&P/ ASX200 was Macarthur Coal, share price as mentioned before. Shares in Carnarvon Petroleum and Energy World Corp also closed higher today.
The worst performing stock was Sigma Pharmaceuticals, share price also as mentioned earlier, while shares in Gunns and Carsales.com also closed lower today.
In commodities, gold is trading at $1,106.75 U.S an ounce and light crude is down $0.06 to $82.31 U.S a barrel.
