The Australian share market has given up earlier gains to finish the session flat, dragged down by the big four banks and health care stocks like biopharmaceutical company CSL.
CSL has shed almost $2.4 billion of its market value in the last two trading days after stopping distribution of its children’s swine flu drug and US rival Baxter International cutting its full-year earnings forecast.
The S&P/ASX 200 Index finished 2 points lower at 4,880, while on the futures market, the SPI200’s down 23.
To company news around this afternoon: Oil Search Ltd (ASX:OSH) has reported a 10% decline in oil and gas production for the first quarter of 2 million barrels of oil equivalent. The explorer has blamed natural field decline, reservoir management issues and a scheduled shutdown for the fall. Compared to the same period a year before, production for the three months to March 31 was up 5.2%, due to the success of the 2009 drilling program. The company says its average realized oil price for the first quarter is $US73.78 a barrel – 5% lower than in the December quarter. Shares in Oil Search closed 0.52% stronger at $5.79.
AWB Ltd (ASX:AWB) has received court approval for its $39.5 million settlement plan in a shareholder class action relating to the Iraqi kickbacks scandal. The agribusiness firm says the Federal Court approval means the Watson class action is dismissed without admission of liability by AWB. The company will pay $39.5 million to a group of over 1000 shareholders who were involved in the class action. AWB made an agreement with shareholders in February to settle the class action seeking compensation for the company’s failure to disclose Iraqi kickbacks under the United Nations’ Oil for Food Program. The amount of the settlement will be listed as a significant item in AWB’s half year accounts. AWB shares closed 0.47% higher at $1.07.
Also making news: Wesfarmers Ltd (ASX:WES) says production at its Premier Coal operations dropped by 2.9% to 670,000 tonnes in the March quarter, as a result of reduced demand from the Western Australian government’s energy arm, Verve Energy.
West Australian Newspapers Holdings Ltd (ASX:WAN) has reported a profit of $22 million for the three months to March 31, up 14.4% on the same period a year ago. The company has cited greater advertising revenue and lower costs as the drivers of the result.
Kerry Stokes’ proposed $3 billion merger between the Seven Network Ltd (ASX:SEV) and WesTrac has received court approval today.
And there are reports that global miner BHP Billiton Ltd (ASX:BHP) is being sued by an environmental group in the US over alleged water contamination at its operations in New Mexico.
In the best and worst performers: Among the best performing sectors at close was the Consumer Discretionary index, up 10 points at 1,662. The worst performing sector was the Health Care index; down 231 points at 8,434.
The best performing stock in the S&P/ ASX200 was Aquarius Platinum, shares rose 5.35% to $7.48. Shares in Medusa Mining and Eldorado Gold also closed higher.
The worst performing stock was Infigen Energy, shares fell 14.58% to $1.025, after the company revealed its decision to keep its US wind energy business because bids it had received were too low. Shares in Carnarvon Petroleum and CSL also closed weaker today.
In commodities, gold is trading at $1,153.05 U.S an ounce and light crude is down $0.47 at $83.73 U.S a barrel.
