The Australian share market slid further into the red this afternoon, closing sharply lower as fears about Europe’s debt problems resurfaced and controversy surrounding the federal government’s planned mining tax deterred buyers.
About $150 billion has been wiped from the market so far this month. The S&P/ASX 200 Index finished the day 130 points lower at 4,265. While on the futures market, the SPI200’s down 141.
In economic news: Wages continued to grow during the May quarter as the jobs market tightened according to a report by the Melbourne Institute. Total pay rose 4.3% over the 12 months to May 2010, from 3.2% in February. And wages are expected to increase by about 2.5% over the next year.
To company news around this afternoon: Shares in Flight Centre Ltd (ASX:FLT) have risen on news the travel firm has upgraded its profit guidance for fiscal 2010. The company has continued to trade above expectations and is now forecasting a pre-tax profit of between $190 and $200 million, excluding any major non-recurring items. It had previously been expecting a result of between $160 and $180 million. Managing director Graham Turner says the upgraded profit would be the company’s second strongest full year result, representing 90 to 100% growth on its fiscal 2008 pre-tax earnings. Mr Turner says sales volumes are healthy globally and trading conditions have started to improve in most of its overseas businesses during the second half. Shares in Flight Centre closed 2.94% higher at $16.80.
Iron ore miner Fortescue Metals Group Ltd (ASX:FMG) has warned investors their shares could fall further as a result of the federal government’s proposed Resource Super Profits Tax and urged them to take action. Chairman Herb Elliott has called on the company’s 55,000 local shareholders to contact Prime Minister Kevin Rudd and Treasurer Wayne Swan to tell them that the planned tax on mining profits is flawed and will harm Australia’s economy. Last week, the company said it had put over $17 billion worth of expansion projects on hold because debt financing had become difficult due to the uncertainty surrounding the tax. Fortescue Metals’ shares have already lost ground since the tax was announced earlier this month. The miner’s shares closed 7.53% weaker at $3.44.
Also making news: Analytical testing services provider Campbell Brothers Ltd (ASX:CPB) has posted a 29% fall in full year profit to just over $75 million. The result was in line with guidance.
Oil and gas explorer Carpathian Resources Ltd (ASX:CPN) has called on lawyers to investigate alleged irregularities in some of its previous financial transactions.
The Australian Competition and Consumer Commission has fined Telstra Corporation Ltd (ASX:TLS) $40 million for breaching its obligations under federal law.
And CP2, the largest shareholder of toll road operator Transurban Group Ltd (ASX:TCL), has lodged an application with the Takeovers Panel requesting that the company be restrained from proceeding with the rights issue in its current form.
In the best and worst performers: Almost all industry sectors finished in the red, but the sector with the smallest losses was the Health Care index, down 89 points at 7,947. The worst performing sector at close was the Energy index; plunging 551 points at 13,715.
The best performing stock in the S&P/ ASX200 was St Barbara, shares rose 3.39% to $0.305, while shares in Flight Centre and Graincorp also closed higher.
The worst performing stock in the S&P/ASX200 today was Gunns, shares fell 24.29% to $0.265. Shares in Linc Energy and Macmahon Holdings also closed weaker today.
In commodities, gold is trading at $1,192.40 U.S an ounce, and light crude is down $1.20 to $69.01 U.S a barrel.
