The local share market has ended a rollercoaster day of trading much as it began as concerns about Europe’s debt crisis lingers. Aussie shares have closed flat, with gold miners and energy stocks leading the declines.
Takeover activity that has helped to power the market over the past few months appears to have fizzled with Macarthur Coal shares sinking today after it rejected the latest offer from US coal giant Peabody Energy.
The S&P/ASX 200 Index closed the day just 3 points stronger at 4,471. While on the futures market, the SPI200’s down 2 points.
In economic news: Housing affordability dropped 4% in the March quarter to its lowest level since the September quarter of 2008 according to the Housing Industry Association/Commonwealth Bank index. And the National Australia Bank’s business conditions index fell 8 points to a read of 5 during the March quarter.
To company news around this afternoon: Engineering services provider Bradken Ltd (ASX:BKN) plans to raise $65 million to fund the acquisition of Canadian mining manufacturer Almac Machine Works. The company says it plans to buy Almac for $52.4 million to increase its exposure to Canada’s mining markets. The equity raising will involve a $50 million institutional placement and a retail share purchase plan capped at $15 million. Bradken has also upgraded its 2010 full-year earnings before interest, tax, depreciation and amortization guidance to be in line with its 2009 result of just over $169 million. Shares in Bradken last traded at $7.25.
Oil and gas explorer Origin Energy Ltd’s (ASX:ORG) managing director Grant King says coal will remain the most economical fuel for power generation in Australia unless a price is put on carbon. Speaking at a conference in Brisbane today, Mr King said a carbon price of between $20 and $40 per tonne would drive substantial fuel substitution for power generation. Mr King said the opportunity for gas to dominate Australia’s power generation has been lost to coal, mostly because of new coal-fired power generation in Queensland. He also confirmed that the company hopes to make a final investment decision on its proposed LNG joint venture with ConocoPhillips in Queensland by the end of the year, even though it could be delayed by the planned mining profits tax. Shares in Origin Energy closed 1.02% lower at $14.62.
Also making news: Queensland Mining Corporation Ltd (ASX:QMN) has hit a high grade copper mineralisation at its Flamingo copper-gold project in northwest Queensland. The drilling program found an inferred resource of 117,000 tonnes at 6% copper and 1.8% gold.
Uranium producer Paladin Energy Ltd (ASX:PDN) says it is seeking merger and acquisition opportunities overseas while it assesses the impact of the federal government’s planned resource profits tax.
Toll road operator Transurban Group Ltd (ASX:TCL) has lost another key shareholder after it rejected a takeover offer from three of its largest investors last week.
And takeover target AXA Asia Pacific Holdings Ltd (ASX:AXA) says it is undecided whether to terminate a $13 billion takeover agreement with National Australia Bank Ltd (ASX:NAB) after the deal was blocked by the ACCC.
In the best and worst performers: The best performing sector at close was the Telco Services index, up 13 points at 1,027. At the other end, the Energy index was the worst performer, finishing 78 points lower at 14,472.
The best performing stock in the S&P/ ASX200 was Ardent Leisure, shares rose 4.07% to $1.15, while shares in Australian Agricultural Company and Leighton Holdings also closed higher.
The worst performing stock was Macarthur Coal, shares plunged 15.73% to $11.25. Shares in Perseus Mining and St Barbara also closed weaker today.
In commodities, gold is trading at $1,225.20 U.S an ounce and light crude is up $0.69 to $70.77 U.S a barrel.
