Aussie stocks have closed in the red today, pressured by falls in commodity prices and profit taking in mining and energy stocks. A weak lead from Wall St overnight on fears that very low interest rates will not remain so low for much longer also added to the mood of the local market today.
The S&P/ASX 200 Index finished 23 points lower at 4,938. While on the futures market, the SPI200’s down 39.
To company news around this afternoon: Macarthur Coal Ltd (ASX:MCC) says it believes shareholders have all the information required to make an informed decision at Monday’s shareholder meeting to vote on the takeover of Gloucester Coal Ltd (ASX:GCL) and that it has no basis to delay the meeting. The miner’s response was prompted by news that US coal major Peabody Energy had asked the takeovers panel to intervene and stop the shareholder meeting going ahead. Macarthur says Peabody has had sufficient time to formulate and make a definitive proposal and has failed to do so. In relation to financing, in its sweetened offer of $14 a share Peabody simply stated its confidence in being able to finance the transaction, rather than providing any definitive confirmation of funds being made available. The miner noted that Peabody had taken full page advertisements in major Australian newspapers highlighting their perspective on the Peabody proposals and the Gloucester takeover, but Macarthur says the ads are self serving and potentially misleading. The company says it does not believe the current Peabody proposal is capable of being a superior proposal to the Gloucester and Middlemount transactions. Shares in Macarthur Coal closed 0.35% stronger at $14.36 today.
Emerging coal energy company MetroCoal Ltd (ASX:MTE) has signed a $30 million joint venture agreement with a subsidiary of China National Coal Group Corp. As part of the deal China Coal Import & Export Company has acquired a 51% interest in MetroCoal’s Columboola exploration permit in the Surat Basin, Queensland. MetroCoal says the funds will be used for exploring and evaluating the potential for future commercialisation options within the Columboola tenement and opens up the opportunity for participation the company’s other tenements. The joint venture requires a minimum spend of $4 million within the first two years of the agreement. Shares soared on the news to close 28.57% higher at $0.27.
Also making news: According to a Fairfax report, AGL Energy Ltd (ASX:AGK) has acquired boiler and thermal services company Boilerland who already services many of the company’s major clients. The business will be renamed AGL Boilerland.
Mineral Resources Ltd (ASX:MIN) has finalised a joint venture agreement with Atlantic Ltd (ASX:ATI) to bring the Windimurra Vanadium project in Western Australia back to life.
Property investor Mirvac Group (ASX:MGR) has completed a $350 million institutional placement announced yesterday. The company placed 250 million shares at a fixed price of $1.40 a share.
And Arrow Energy Ltd (ASX:AOE) says it has found a potentially major coal-seam gas resource in New South Wales. The company says it will move swiftly to confirm the gas production potential of the find.
In the best and worst performers: The best performing sector at close was the Telco Services index, up 14 points at 1,049. The worst performing sector was the Materials index; down 138 points at 13,129.
The best performing stock in the S&P/ ASX200 was Macmahon Holdings, shares rose 7.59% to $0.85, while shares in Hastings Diversified Utilities Fund rose after APA Group increased its stake in the company, and Eldorado Gold also closed higher.
The worst performing stock was Infigen Energy, shares fell 5.04% to $1.225. Shares in Linc Energy and Mirvac Group also closed weaker today.
In commodities, gold is trading at $1,146.85 U.S an ounce and light crude is down $0.08 to $85.80 U.S a barrel.
