The Australian share market has given up earlier gains to close the session lower, investor confidence dented by doubts about the details of the $1 trillion sovereign debt crisis fund.
Investors are also showing caution ahead of the federal budget to be handed down tonight by Treasurer Wayne Swan at 7.30pm east coast time.
The S&P/ASX 200 Index finished the day 52 points lower at 4,548. While on the futures market, the SPI200’s down 53.
In economic news: Australian businesses have downgraded their forecasts for growth in sales, jobs and selling prices as interest rates begin to bite. The Dun and Bradstreet Business Expectations index for the September quarter found expectations for selling prices fell 4 points to a read of 19 for the September quarter, while employment expectations slipped one point to 8 points.
To company news around this afternoon: Packaging company Amcor Ltd (ASX:AMC) is to combine its Australasian operations and US-based packaging distribution unit into one Melbourne-based division.The company says the new division will be led by Nigel Garrard in a new role as president of Amcor Australasia and Packaging Distribution. Mr Garrard says the restructure will bring the sales and marketing expertise of the US operation into the Australasian market. The integration comes as Amcor spends $700 million on major plant and capital investments. Shares in Amcor closed 0.31% higher at $6.51.
Drilling services provider Boart Longyear Ltd (ASX:BLY) has announced a new chairman and confirmed its full year earnings guidance. Speaking at the company’s annual general meeting today, current chairman Graham Bradley told shareholders that he would be resigning in late August. David McLemore, a director of the company since early 2007, will become the new chairman. Mr Bradley also reaffirmed that the company expects earnings before interest, tax, depreciation and amortisation for 2010 to rise by 76% compared to 2009’s result. Boart Longyear shares closed 1.49% higher at $0.34.
Also making news: Excalibur Mining Corporation Ltd (ASX:EXM) has announced it will start drilling at its Browns Range project in the Northern Territory’s Tanami Desert next month.
Macarthur Coal Ltd (ASX:MCC) has revealed it is not inclined to accept the lowered takeover offer it received from Peabody Energy yesterday while uncertainty remains over the federal government’s planned mining tax.
Port and rail operator Asciano Group (ASX:AIO) says it expects to report a non-cash impairment charge of around $1.11 billion in the second half of the year to June 30, 2010.
And Uranium One has increased its stake in Aussie-based uranium miner Paladin Energy (ASX:PDN) sparking speculation that a takeover may be on the way.
In the best and worst performers: Among the better performing sectors at close today was the Industrials index, up 1 point at 3,697. And among the worst performers was the Materials sector; down 243 points at 11,605.
The best performing stock in the S&P/ ASX200 was SMS Management & Technology, shares rose 3.46% to $6.28, while shares in Hastie Group and Hills Industries also closed higher.
The worst performing stock was Eastern Star Gas, shares dropped 6.75% to $0.76. Shares in Energy World Corp and Mt Gibson Iron also closed weaker today.
In commodities, gold is trading at $1,207.50 U.S an ounce and light crude is down $0.56 to $76.24 U.S a barrel.
