The local share market has given up most of yesterday’s gains to close the session lower, with investors showing their disappointment at not seeing a significant rise in China’s currency today. Initial optimism about the country’s decision to make the yuan more flexible has been replaced with fears that more expensive Chinese exports could slow global growth.
The S&P/ASX 200 Index lost 54 points to finish at 4,558. And on the futures market, the SPI200’s down 49 points.
In economic news: Commodity export earnings are forecast to rise to $202.5 billion in fiscal 2011, according to a report released by the Australian Bureau of Agricultural and Resource Economics (ABARE). The predicted rise is due to increased contract prices for iron ore and coking coal.
To company news around this afternoon: Engineering and construction giant Leighton Holdings Ltd (ASX:LEI) has confirmed that it is on track to achieve a full year profit and sees no need to write down the value of its Middle East business. CEO Wal King says the company still aims to book a profit after tax of $600 million for the 2010 financial year. Mr King says targets of $29 billion of revenue, a $900 million net profit and $50 billion of work in hand are achievable in the next five years. The company had $37.5 billion of work in hand at the end of March. Shares in Leighton Holdings closed 1.29% lower at $32.04.
Operations and maintenance provider Transfield Services Ltd (ASX:TSE) has picked up over $200 million in new work across its international businesses. Some of the work has come from the Gulf of Mexico oil spill and the rest involves providing maintenance and supply services for the New Zealand and Victorian electricity sectors. Managing director and CEO Peter Goode says the company’s ability to deliver asset management solutions from an owner’s perspective continues to position it competitively. Mr Goode says the company has a strong order book that contains a number of long-term contracts. Shares in Transfield Services closed 4.76% lower at $3.20.
Also making news: Engineering contractor Macmahon Holdings Ltd (ASX:MAH) has won a $72 million contract extension to perform work at the Newmont Mining open cut gold mine in New Zealand until 2015.
Suncorp-Metway Ltd’s (ASX:SUN) funds management arm Tyndall has been valued at between $150 and $200 million by Credit Suisse amid speculation it could be sold.
Elders Ltd (ASX:ELD) shares plunged today after the rural and financial services company revealed it expects to post a loss for the year and slash jobs in an effort to keep the business afloat.
And the mining sector is feeling the loss of Sundance Resources Ltd (ASX:SDL) executives who have died after boarding an ill-fated flight on Saturday from West Africa. George Jones has resumed the role of chairman of the company and has vowed to rebuild its board.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 5 points at 903. The worst performer was the Telco Services index, down 26 points at 1,100.
The best performing stock in the S&P/ ASX200 was Charter Hall Retail, shares rose 2.61% to $0.59. Shares in Pacific Brands and Equinox Minerals also closed higher.
Not surprisingly, the worst performing stock was Elders, shares sank 46.34% to close at $0.44. Shares in Isoft Group and Nufarm also closed weaker today.
In commodities, gold is trading at $1,238.55 U.S an ounce, and light crude is down $0.67 at $77.15 U.S a barrel.
