Aussie stocks closed in the red today, dragged lower by declines in resource stocks and financials with downgrades and cautious company outlooks affecting other sectors.
The S&P/ASX 200 Index finished 47 points lower at 4,907, while on the futures market, the SPI200’s down 66.
To company news around this afternoon: The Australian reports that Harbinger Capital has sold another 30 million shares of iron ore miner Fortescue Metals Group Ltd (ASX:FMG) in a block trade through UBS at $5.01 a share. This is the second parcel of shares to be sold by US hedge fund Harbinger Capital Partners after it offloaded some of the stock last month. A Fairfax report also indicates that another parcel of 25.87 million Fortescue shares worth around $129.6 million, was sold today as well. The miner’s stock also came under pressure today from weaker commodities prices. Shares in Fortescue Metals Group closed 3.42% weaker at $5.08.
Iluka Resources Ltd (ASX:ILU) says demand for high value mineral sands products recovered in its main markets during the March quarter. The miner says after lowering production to match a softening in demand during the global financial crisis, it has now increased output to meet an increase in demand. Zircon production, used in ceramics, rose 31.8% in the three months to March compared to the previous quarter, but down on the year before. Rutile production climbed 23.4% in the quarter and synthetic rutile production rose 1.5%. Sales revenue however, fell 33% to $154.4 million compared to the previous quarter, but was more than double its March quarter 2009 result. Iluka says it expects sales to remain constrained by production for the remainder of 2010 and into 2011. Iluka Resources shares closed 0.82% lower at $4.83.
Also making news: AGL Energy Ltd (ASX:AGK) today concluded the sale of the Berwyndale to Wallumbilla Pipeline to APA Group Ltd (ASX:APA) for $82.6 million.
Aquila Resources Ltd (ASX:AQA) says the expansion of the Isaac Plains Coal Mine in Central Queensland has been given the green light by Minister for Climate Change and Sustainability Kate Jones who approved new environmental conditions for the mine’s operation. Aquila says the project will now ramp-up production from 2 million tonnes per annum to the target of 3.6 million tonnes per annum of coal.
Global miner BHP Billiton Ltd (ASX:BHP) is remaining quiet on reports of corrupt dealings with the Cambodian Government after it was said the company had allegedly paid ‘tea money’, a local term for unofficial payments to government authorities, in order to obtain rights to a bauxite mine in Cambodia.
And conglomerate Wesfarmers Ltd (ASX:WES) says third quarter sales for its Coles supermarket chain rose 4.9% compared to last year, however it remains cautious going into the fourth quarter.
In the best and worst performers: All sectors closed in the red this afternoon, however the sector at close with the smallest loss was the Telecom Services index, down a point at 1,079. The sector with the biggest loss was the Health Care index; down 138 points at 9,057.
The best performing stock in the S&P/ ASX200 was FKP Property Group, shares rose 5.56% to $0.855, while shares in GrainCorp and PaperlinX also closed higher.
The worst performing stock was Murchison Metals, shares fell 5.17% to $2.75. Shares in OneSteel and Macmahon Holdings also closed weaker today.
In commodities, gold is trading at $1,148.10 U.S an ounce and light crude is up $0.01 at $83.69 U.S a barrel.
