The benchmark index failed to reach the 5,000 level today, with investors choosing to take profits after the market broke through the barrier yesterday. Aussie shares have closed firmly in the red with the miners leading the declines on sluggish commodity prices. The S&P/ASX 200 Index closed the day 33 points lower at 4,952. While on the futures market, the SPI200’s down 44.
To company news around this afternoon: Iluka Resources Ltd (ASX:ILU) says it is expecting a first half loss due to soft demand for mineral sands. In its annual report released today, the miner says its senior executives will forgo pay rises this year in light of the poor result. The company has also revealed it will place its Eneabba mine in Western Australia on care and maintenance as it continues to reduce its reliance on mature operations in the state. The miner says it will commence idling of production activities at the mine on June 10, resulting in the loss of up to 40 jobs. It says the mine is no longer economically viable due to declining ore grades. Shares in Iluka Resources closed 4.02% lower at $4.78.
Melbourne-based miner Mineral Deposits Ltd (ASX:MDL) is planning to spin off its Grande Cote mineral sands project in Senegal, West Africa, via an initial public offering to fund its $US400 million development cost. The Australian newspaper reports that at least 50% of the project’s cost will be raised through the IPO, which is likely to occur later this year. Construction is expected to take two years, with first production slated for 2013, allowing the miner to raise the additional funds for the project after a listing on the ASX. Shares in Mineral Deposits closed 0.96% higher at $1.05.
Also making news: Steel producer OneSteel Ltd (ASX:OST) says a failure at its Whyalla blast furnace in South Australia has led to a production stoppage. Operations are expected to resume after repairs are completed tomorrow.
Macmahon Holdings Ltd (ASX:MAH) has confirmed it has been awarded a $90 million Queensland Rail contract for civil works within the Goonyella to Abbot Point Expansion Project.
Aluminium producer Alcoa Inc (ASX:AAI) has reported a first quarter loss of US$201 million, on hefty one-off charges.
And Leighton Holdings Ltd (ASX:LEI) says its joint venture with construction company Abigroup has been awarded a $240 million contract to deliver upgrade works on the Gateway Motorway in Brisbane.
In the best and worst performers: The best performing sector today was the Telco Services index, up 28 points at 1,087. The sector with by far the biggest losses today was the Energy index; down 311 points at 16,093.
The best performing stock in the S&P/ ASX200 was Charter Hall Group, shares rose 3.57% to $0.725, while shares in Iress Market Technology and Energy World Corp closed higher.
The worst performing stock was Karoon Gas Australia, shares fell 9.05% to $7.44. Shares in Energy Resources and Alumina also closed weaker today.
In commodities, gold is trading at $1,154.20 U.S an ounce and light crude is down $0.25 to $84.09 U.S a barrel.
