Poor US housing data sent Aussie shares sliding today, prompting the local share market to close lower as investors sold off banking and mining stocks. Westpac and the Commonwealth Bank led the banks lower.
The S&P/ASX 200 Index lost 72 points to finish at 4,486. And on the futures market, the SPI200’s down 50 points.
To company news around this afternoon: Power station owner Alinta Energy Ltd (ASX:AEJ) has confirmed it has received takeover offers as it weighs up asset sales as part of a plan to reduce its hefty $2.7 billion debt. The company says it is assessing deleveraging options for the business, including asset sale and capital management options, with a focus on maximising enterprise value. As part of the process, it has received a number of indicative, non-binding, confidential bids for both the business as a whole and parts of it. Industry sources say interested parties include Origin Energy and BHP Billiton. Alinta has not named the bidders and says it is still deciding whether to pursue any of the offers. The company has confirmed its full year earnings before interest, tax, depreciation and amortisation guidance of $288 million. Shares in Alinta Energy closed 42.22% higher at $0.064.
Macquarie Group Ltd (ASX:MQG) has suffered a blow this afternoon with the shock resignation of senior banker Andrew Low. Mr Low, who was the Chief Operating Officer of Macquarie Capital, has quit the company to start his own Asia Pacific financial services outfit. He was in charge of building Macquarie’s Asian operations and is believed to have spent 10 years with the company. Mr Low’s resignation is believed to have come as a surprise to the bank as he was seen as second in charge of Macquarie Capital. Macquarie has announced that Len Caronia, the head of its Financial Institutions Group in North America, will replace Mr Low as global head of the advisory business. Shares in Macquarie Group closed 3.13% lower at $42.67.
Also making news: Shares in pharmaceutical company Pharmaxis Ltd (ASX:PXS) have taken a hit after investors took a bleak view of the results of its Bronchitol drug for cystic fibrosis sufferers.
Media and earthmoving company Seven Group Holdings Ltd (ASX:SVW) has confirmed it has applied for $250 million worth of shares to become a cornerstone investor in the float of Agricultural Bank of China.
Perpetual Ltd (ASX:PPT) CEO David Deverall has decided to resign as head of the company, but will stay on in the role until a replacement is found.
And Woodside Petroleum Ltd (ASX:WPL) says it intends to make an application to Fair Work Australia to suspend protected industrial action at its Pluto LNG project.
In the best and worst performers: The majority of industry sectors closed in the red, but the sector with the most gains at close was the Telco Services index, up 11 points at 1,111. The worst performer was the Financials excluding the Real Estate Investment Trust index, down 113 points at 5,058.
The best performing stock in the S&P/ ASX200 was Energy World Corp, shares rose 2.63% to $0.39. Shares in Telecom of New Zealand and ING Industrial also closed higher.
For the second day straight, the worst performing stock was Elders, shares sank 14.77% to close at $0.375. Shares in Isoft Group and Biota Holdings also closed weaker.
In commodities, gold is trading at $1,239.50 U.S an ounce, and light crude is down $0.43 at $77.42 U.S a barrel.
