After treading water for most of the day, the local share market has closed the session flat, giving up yesterday’s gains. Losses in mining stocks dragged the market lower, but gains in gold stocks on the back of a rallying gold price saw it edge up this afternoon.
Uncertainty over the federal government’s planned mining profits tax and Europe’s debt woes continues to weigh on investor sentiment. The S&P/ASX 200 Index finished the day 4 points higher at 4,385. While on the futures market, the SPI200’s up 8 points.
To company news around this afternoon: Telstra Ltd (ASX:TLS) says it remains committed to reaching an agreement with the government on its planned National Broadband Network. CFO John Stanhope says negotiations are continuing daily, but he could not give any guidance on when they may end or if an agreement is likely. If an agreement isn’t reached, Telstra could be forced by law to undertake a separation of its businesses that the company says could cost it $1 billion over five years. The telco’s market share has increased in recent months due to its offering of bundled services to customers. Telstra and the government have been negotiating since last year over the future of its fixed-line phone network which may be tipped into a $43 billion National Broadband Network. Telstra shares rose 1.29% to close at $3.15.
The Supreme Court of Queensland has ruled that surfwear retailer Billabong International Ltd (ASX:BBG) validly terminated its Indonesian license agreement in 2005. The validity of the license termination had been challenged by Billabong’s former licensee, CV Bali Balance, in a range of proceedings in Indonesia. Billabong says the Supreme Court’s ruling reinforces its view that there was no basis for the civil claim. The company plans to use the ruling as part of its defense in ongoing legal actions. Shares in Billabong International closed 0.11% lower at $9.40.
Also making news: Shares in Sonic Healthcare Ltd (ASX:SHL) have surged on a report that the company has become a takeover target for global laboratory giant Quest Diagnostics Inc.
Qantas Airways’ Ltd (ASX:QAN) budget airline Jetstar has announced that it will offer flights to Singapore from Melbourne starting in December as it challenges Singapore Airlines on long-haul routes.
Virgin Blue Holdings Ltd (ASX:VBA) CEO John Borghetti has denied reports the airline is planning to exit the leisure travel market, and flagged the company’s interest in forming new alliances.
And BHP Billiton Ltd (ASX:BHP) has applied some more pressure for changes to be made to the Federal Government’s Resource Super Profits Tax after announcing a bigger resource estimate than expected at its Jansen potash project in Canada.
In the best and worst performers: The best performing sector at close was the Health Care index, up 129 points at 8,435. The worst performer was the Industrials index, down 26 points at 3,329.
The best performing stock in the S&P/ ASX200 was Avoca Resources, shares rose 8.29% to $2.35 after the gold miner upgraded the reserve and resource estimate at its Higginsville Gold Operation, while shares in ING Industrial and Perseus Mining also closed higher.
The worst performing stock for the second day running was Isoft Group, shares fell 12.5% to close at $0.245. Shares in Elders and Gunns also closed weaker today.
In commodities, gold is trading at $1,239.35 U.S an ounce, and light crude is up $0.45 at $72.44 U.S a barrel.
