The Australian share market has closed weaker today with the benchmark index falling back below the 5,000 level with the miners and energy firms the main draggers. The market did however manage to squeeze out a gain for the week.
The S&P/ASX 200 Index finished 17 points lower at 4,985, up 37 points on the week, while on the futures market, the SPI200’s down 19.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 147 points higher for the four trading days this week. The S&P500 Index gained 17, the NASDAQ rose 62 and the 100 index lifted 44 points.
To company news around this afternoon: Leighton Holdings Ltd (ASX:LEI) says an alliance involving Leighton Contractors has been awarded a contract worth approximately $370 million to deliver a component of Queensland Rail’s Goonyella to Abbot Point Expansion Project in Central Queensland. Leighton says the contract includes $68 million previously allocated to the Alliance in 2008 to commence earthworks on the project. Managing director of Leighton Contractors Peter McMorrow says the company is well positioned to deliver the project. Leighton says the project, which is expected to be finished by December 2011, will significantly increase the carrying capacity and reliability of the central Queensland coal rail system. Shares in Leighton Holdings closed 0.32% lower at $37.53.
Coal & Allied Industries Ltd (ASX:CNA) has negotiated a big jump in price for its semi-soft coking coal following its move to quarterly pricing. The company, which is 76% owned by Rio Tinto Ltd (ASX:RIO) says the benchmark price for the first quarter starting April 1, 2010, has been set at US$167. This is a jump from the US$90 to US$95 a tonne achieved last year for the steel-making commodity. Coal & Allied says thermal coal market benchmark pricing in Japan is in the process of being agreed on with customers, however some settlements have been concluded in the high US$ 97 plus range, way up on the US$70 a tonne last year. Shares in Coal & Allied closed 0.51% weaker at $97.50.
Also making news: Takeover target Macarthur Coal Ltd (ASX:MCC) says it will enter into discussions with US coal major Peabody Energy on its revised takeover offer following notice that two of its three major shareholders said the offer is worth having a look at. The miner also delayed its April 19 shareholder meeting to vote on the Gloucester takeover.
Qantas Airways Ltd (ASX:QAN) has cancelled flights to the UK and Germany today after volcanic ash spewing from a volcano in Iceland clouded over the airspace in Europe. It is unsure at this stage whether tomorrow’s flights will also be cancelled.
And taking a quick look at some of the big stories making headlines this week: Regional lender Bank of Queensland Ltd (ASX:BOQ) reported a 96% rise in half year profit.
Things heated up for Kerry Stokes with two of the Seven Network Ltd’s (ASX:SEV) major shareholders saying they would vote in favour of the proposed merger of Seven and WesTrac.
And QBE Insurance Ltd (ASX:QBE) acquires US crop insurer NAU Country Insurance Company, for US$565 million.
In the best and worst performers: The best performing sector at close was the Health Care index, up 82 points at 9,162. The worst performing sector was the Energy index; down 239 points to 15,938.
In the S&P/ ASX200 Macarthur Coal was the best performing today following another big week of takeover interest in the company, shares rose 8.25% to $16.54. Meanwhile shares in PaperlinX and Mineral Resources also closed stronger today.
The worst performing stock was Sigma Pharmaceuticals, shares fell 8.33% to $0.495. CEO Elmo De Alwis announced his resignation following the company’s massive $390 million loss announced last month. Shares in AWE and Gindalbie Metals also closed weaker today.
And finally, the Aussie dollar is trading at 93.02 US cents - and is basically flat on the week. In commodities, gold is trading at $1,154.65 U.S an ounce and is down $5.25 on the week, and light crude is $0.66 lower at $84.85 U.S cents a barrel.
