Despite improving from earlier lows, the local share market has closed in the red this afternoon on concern for the impact of Europe’s debt crisis on global economic growth. The banks managed to swing into positive territory at close as investors picked up hammered bank stocks.
The S&P/ASX 200 Index closed 11 points lower at 4,305, down 306 points on the week, while on the futures market, the SPI200’s down 18.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 552 points lower for the four trading days this week. The S&P500 Index fell 64 points, the NASDAQ lost 143 and the 100 index dropped 107 points.
To company news around this afternoon: Global miner Rio Tinto Ltd (ASX:RIO) has reportedly reached iron ore price agreements with big Asian steel mills outside of China. According to the Australian Associated Press, sources say the miner has achieved price increases of more than 90%. The benchmark prices are only for the period between April and June and not the entire year. According to AAP, sources say the price agreements are based on the quarterly spot prices from January to March this year, a time when iron ore was trading strongly in global markets. Shares in Rio Tinto closed 0.72% weaker at $61.80.
Engineering and infrastructure company Downer EDI Ltd (ASX:DOW) says it will not need to raise capital to fund the manufacture and maintenance of trains as part of a contract with Reliance Rail. Reliance Rail contracted Downer EDI Rail - Hitachi joint venture to design and manufacture trains for Sydney’s rail network. Delays in the delivery of the trains, has prompted speculation Downer may need to raise funds to help Reliance Rail with funding pressures. In a statement to the ASX, Downer says speculation of such an equity raising related to Reliance Rail is inaccurate and there is no such mandate in place between Downer and any investment bank. Downer says any support it may choose to offer Reliance Rail would not be material to Downer. Shares in Downer EDI closed 2.86% lower at $6.45.
Also making news: Shares in troubled weapons maker Metal Storm Ltd (ASX:MST) plummeted close to 18% at one point today after the company said it would not abandon its technology plans despite earlier problems attracting funding.
And south Australian based oil exploration and production company Stuart Petroleum Ltd (ASX:STU) has been granted an exploration licence for an area of the Cooper Basin.
Taking a look back at some of the stories that made headlines this week: Sigma Pharmaceuticals Ltd (ASX:SIP) has received a takeover approach following the resignation of its chairman just yesterday.
BHP Billiton Ltd (ASX:BHP) CEO Marius Kloppers says the mining tax has cut the value of its proposed Pilbara iron ore merger with Rio Tinto. News this afternoon that the miner has outlined changes it would like to see to the proposed mining tax in talks with the Federal Government today. According to Reuters BHP says any tax should be based on the value of the commodities produced.
And Healthscope Ltd (ASX:HSP) received a sweetened takeover offer from a private consortium valuing the company at around $1.82 billion.
In the best and worst performers: The best performing sector at close today was the Financials excluding Real Estate Investment Trust index, up 61 points at 4,966. The worst performing sector was the Health Care index; down 340 points at 8,070.
In the S&P/ ASX200 news of a takeover bid propelled Sigma Pharmaceuticals stock up today, its shares were the best performing skyrocketing 37.14% to $0.48. Meanwhile shares in Emeco Holdings and Pacific Brands closed stronger today.
The worst performing stock was Sonic Healthcare after its earnings downgrade today, shares shed 20.21% to $10.70. Shares in PaperlinX and Goodman Group also closed weaker today.
And finally, the Aussie dollar is trading at 82.82 US cents - and is down almost 7 cents on the week. In commodities, gold is trading at $1,175.90 U.S an ounce and is down $60.30 on the week, and light crude is $0.32 lower at $70.48 U.S cents a barrel.
