The Australian share market has closed sharply lower today as investor confidence frays amid growing concern that Europe’s debt woes will undermine growth in the global economy. Banks were the worst hit today, with all four major’s closing deep in the red.
The S&P/ASX 200 Index finished the day 71 points lower at 4,317. While on the futures market, the SPI200’s down 72.
In economic news released today: According to figures released by the ABS today, average weekly ordinary time earnings for adult full-time employees rose 1.1% in the three months to February 2010.
To company news around this afternoon: In another blow for the troubled company Sigma Pharmaceuticals Ltd (ASX:SIP) Chairman Dr John Stocker has announced his retirement following the company’s annual general meeting on June 21. Brian Jamieson who is a director of the company, will replace Dr Stocker as chairman. Non-executive director Doug Curlewis has also decided to leave the board after the meeting. The news follows the resignation of both the company’s CEO and CFO after reporting a massive $389 million loss for the year to January 31, 2010. However the company says it is confident of improving cash flow and reducing debt in its financial year 2011. Shares in Sigma Pharmaceuticals closed flat at $0.35.
Mineral sands miner Iluka Resources Ltd (ASX:ILU) says future projects will have to be assessed, including some the company had planned to commit to this year as a result of the Federal Government’s proposed Resources Super Profits Tax. However, despite all the uncertainty, CEO David Robb, says Iluka’s initial analysis suggests that the company should be sheltered for some time by the large amount of capital it has spent recently on solid projects. Mr Robb says the medium term impact of this proposed tax on the overall value of Iluka as a business is likely to be small. Iluka Resources shares closed 1.35% weaker at $4.39.
Also making news: AMP Ltd (ASX:AMP) is to cut the number of superannuation and pension products its offers from six to two next month, resulting in a drop in fee revenue.
Reports say that ANZ Banking Group (ASX:ANZ) looks to be the leading contender to acquire a controlling stake in Indonesia’s PT Bank Panin valued at close to US$1.4 billion.
Private hospitals and pathology provider Healthscope Ltd (ASX:HSP) receives a sweetened takeover offer from a private consortium, valuing the company at around $1.82 billion.
And iron ore miner BC Iron Ltd (ASX:BCI) says the development of the Nullagine Iron Ore Joint Venture with Fortescue Metals Group (ASX:FMG) is on track despite the threat of the Resources Super Profits Tax.
In the best and worst performers: One of the only sectors to close in positive territory today was the Health Care index, up 80 points at 8,410. The worst performing sector at close was the Financials excluding Real Estate Investment Trust index; down 132 points at 4,904.
The best performing stock in the S&P/ ASX200 was Straits Resources, shares rose 6.05% to $1.315, while shares in Hills Industries and Sundance Resources also closed higher.
The worst performing stock in the S&P/ASX200 today was Macmahon Holdings shares dropped 12.07% to $0.51. Shares in Whitehaven Coal and Pacific Brands also closed weaker today.
In commodities, gold is trading at $1,186.05 U.S an ounce, and light crude is up $0.32 to $70.19 U.S a barrel.
