The Australian share market has closed the session lower today as disappointment over ANZ’s weaker than expected dividend and warning over funding pressures caused the big banks to fall. The miners also took a tumble on fears Europe’s debt woes will spread and speculation surrounding the threat of a new resource tax to be imposed by the Australian government.
The S&P/ASX 200 Index finished 37 points weaker at 4,786, while on the futures market, the SPI200’s down 22.
To company news around this afternoon: Woodside Petroleum Ltd (ASX:WPL) says the Sunrise Joint Venture has chosen a floating liquefied natural gas facility as the preferred processing option for Greater Sunrise gas. Woodside holds a 33.4% interest and is operator of the Sunrise Joint Venture, whose other participants are ConocoPhillips, Shell and Osaka Gas. The company says an agreement signed between the Australian and Timor-Leste government in February 2007 requires the Sunrise JV to develop the Greater Sunrise fields to best commercial advantage consistent with good oilfield practice. The company says it believes the floating LNG processing option will, in addition to generating significant long-term petroleum revenue, provide a broad range of social investment, employment and training opportunities for Timor-Leste. Woodside Petroleum closed 0.87% lower at $45.35.
In a move to capitalise on strong iron ore prices, miner Atlas Iron Ltd (ASX:AGO) is to raise $63.5 million to fund a substantial increase in production and shipments in the second half of this calendar year. The funds are to be raised through a $63.5 million placement at $2.49 a share to international and domestic shareholders. The company says the proceeds will enable it to accumulate a significant ore stockpile in the lead-up to the start of exports from the Utah Point port facility in Port Hedland, allowing Atlas to maximise the number of shipments of iron ore in what is anticipated to be a period of very strong iron ore prices. Aurox Resources Ltd (ASX:AXO), who recently agreed to a takeover by Atlas Iron, is in support of the capital raising. Shares in Atlas Iron closed 6.69% weaker at $2.51.
Also making news: Rail and ports group Asciano Group (ASX:AIO) says coal and bulk haulage rose during the March quarter on sustained growth in customer demand.
A report showed that brewer Foster’s Group Ltd (ASX:FGL) share of the national beer market slipped in the March quarter. Over the last five years Foster’s share of the market has fallen from 55% to 49.9%, with rival Lion Nathan’s share of the beer market rising from 38% to 40% in the last five years.
ANZ Banking Group (ASX:ANZ) has booked a 36% increase in its first-half net profit as provisions for bad and doubtful debts moderated.
And iron ore miner Fortescue Metals Group Ltd (ASX:FMG) has been forced to pay US$78 million in damages to shipping contractor Zodiac Maritime after the company lost a court battle in the UK over the suspension of a number of contracts.
In the best and worst performers: Amongst a sea of red there were a few sectors that managed to close in the black. The best performing sector at close was the Consumer Staples index, up 16 points at 7,474. The worst performing sector was the Materials index; down 166 points at 12,294.
The best performing stock in the S&P/ ASX200 was Hastie Group, shares rose 5.38% to $1.665. Shares in St Barbara and Seek also closed higher.
The worst performing stock was Biota Holdings after today revealing that it expects a 70% fall in royalties received from its flu drug Relenza, shares plummeted 22.98% to $1.475. Shares in Atlas Iron and Cudeco also closed weaker today.
In commodities, gold is trading at $1,166.95 U.S an ounce and light crude is down $0.06 at $83.16 U.S a barrel.
