Aussie stocks have closed the session deep in the red, taking their ninth tumble in 10 trading days as European debt concerns and the proposed tax on resource profits continue to spook investors.
By noon, the big four banks were leading the retreat and the market continued its downward trend until the closing bell. The S&P/ASX 200 Index finished the day 101 points lower at 4,573. While on the futures market, the SPI200’s down 117.
In economic news: Australia’s trade deficit widened to $2.08 billion in March from a revised $1.7 billion in February, as coal exports fell and oil imports rose, according to the Australian Bureau of Statistics. A $2.13 billion gap had been forecast.
To company news around this afternoon: Gas producer Santos Ltd (ASX:STO) is confident of making an announcement soon about a new customer for its liquefied natural gas joint venture in Queensland. However, it says it may delay making an investment decision on the project as it studies the government’s new tax on resource profits. The company has previously said it aims to approve the first phase of the LNG project in Gladstone by mid 2010 and to sanction a second unit 12 months later. Meanwhile, the company says it expects total oil and gas production in 2010 to be in the range of 49 to 52 million barrels of oil equivalent - slightly below expectations. Shares in Santos closed 0.77% stronger at $13.01.
Challenger Financial Services Group Ltd (ASX:CGF) has bought the Australian arm of Credit Suisse Investments for an undisclosed amount. The company says the deal will allow it to acquire Credit Suisse’s five credit investment funds with a combined total of funds under management of $1.5 billion, plus two real estate securities funds with $290 million of funds under management. The funds will be used to create a new boutique investment management firm to be run by Credit Suisse director Richard Quin. Challenger Financial Services shares closed 2.99% lower at $3.90.
Also making news: Rio Tinto Ltd (ASX:RIO) has come out and denied reports this morning that it will shelve expansion plans for its iron ore operations in Western Australia, as it continues to study the impact of the proposed Resource Super Profits Tax.
Thailand’s biggest coal producer, Banpu Pcl, has emerged as the mystery buyer of a 14.9% stake in Centennial Coal Ltd (ASX:CEY) after much speculation.
National Australia Bank Ltd (ASX:NAB) has posted a 21.4% drop in first-half net profit to just over $2 billion for the six months to March 31.
And pallet maker Brambles Ltd (ASX:BXB) says it expects its sales for fiscal 2010 to be flat due to the slow recovery in major markets.
In the best and worst performers: All sectors were in negative territory at close, with the exception of the Health Care index, which was up 63 points at 8,617. The worst performing sector was the Financials excluding the Real Estate Investment Trust index; down 204 points at 5,395.
The best performing stock in the S&P/ ASX200 was Centennial Coal, shares rose 18.05% to $4.71, while shares in Gindalbie Metals and Lynas Corp also closed higher.
The worst performing stock was Sigma Pharmaceuticals, shares fell 9.09% to $0.40. Shares in Infigen Energy and Murchison Metals also closed weaker today.
In commodities, gold is trading at $1,174.96 U.S an ounce and light crude is down $0.06 to $79.91 U.S a barrel.
