The local share market has closed the session lower today on lingering fears for Europe’s debt situation. Despite the concerns though, the market managed to record its first weekly gain in four weeks after last week’s horror run.
The S&P/ASX 200 Index closed 42 points lower at 4,611, up 69 points on the week, while on the futures market, the SPI200’s down 60.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 264 points lower for the four trading days this week. The S&P500 Index fell 29 points, the NASDAQ lost 86 and the 100 index dropped 66 points.
To company news around this afternoon: Provider of engineering and infrastructure services, Downer EDI Ltd (ASX:DOW) says it has been chosen as preferred tenderer for a six year contract with iron ore miner Fortescue Metals Group Ltd (ASX:FMG). The contract is for the provision of mining services at Fortescue’s Christmas Creek operation in the east Pilbara region of WA. Downer says contract negotiations for the project, valued at $3 billion, are still to be completed but are expected to be finalised in June 2010, with project commencement scheduled for July 2010. Shares in Downer EDI closed 0.45% higher at $6.77.
Project development and contracting company Leighton Holdings Ltd (ASX:LEI) is to commence construction to expand agricultural land in far North Western Australia today. According to a Fairfax report, Leighton Contractors in partnership with Indigenous business Australia have begun work on the $220 million Ord-East Kimberley Expansion Project. Earlier in the month Leighton, as part of a consortium with Italian company Saipem, was awarded a further $150 million towards an existing contract to build the LNG jetty and marine structures on Chevron’s Gorgon project. Leighton Holdings shares closed 1.45% weaker at $34.64.
Also making news: Engineering and construction company Clough Ltd (ASX:CLO) has launched a coal seam gas division for clients operating in the coal seam gas industry in Australia.
And takeover target DMC Mining Ltd (ASX:DMM) has advised shareholders to take no action with respect to Cape Lambert Resources Ltd (ASX:CFE) sweetened $43.3 million offer and says it is currently in talks with Chinese Meijin Energy Group about a competing offer.
Taking a look back at some of the stories that made headlines this week: Toll road operator Transurban Group Ltd (ASX:TCL) announced its acquisition of the Lane Cove Tunnel for $630.5 million. Following this it was revealed that three of the company’s main shareholders had launched a takeover bid for the company.
The Commonwealth Bank of Australia Ltd (ASX:CBA) posted cash earnings of $1.5 billion for the March quarter.
And hospital owner and manager Healthscope Ltd (ASX:HSP) received a takeover offer from a private equity consortium, valuing the company at around $1.74 billion.
In the best and worst performers: In a sea of red one of the only sectors to finish in positive territory today the sector was the Health Care index, up 46 points at 8,616. The worst performing sector was the Financials excluding Real Estate Investment Trust index; down 90 points at 5,361.
In the S&P/ ASX200 news of a takeover bid pushed Healthscope to the top of the list, shares rose 17.33% to $5.28. Meanwhile shares in Australian Agricultural Company and Murchison Metals closed stronger today.
The worst performing stock was Gindalbie Metals, despite strong support for its capital raising, shares fell 8.62% to $1.06. Shares in Biota Holdings and Karoon Gas Australia also closed weaker today.
And finally, the Aussie dollar is trading at 89.55 US cents - and is up almost a cent on the week. In commodities, gold is trading at $1,236.20 U.S an ounce and is up $29.45 on the week, and light crude is $0.66 lower at $73.74 U.S cents a barrel.
