Despite early gains the local share market has closed the session marginally lower, after newly sworn in PM Julia Gillard indicated that she plans to keep the proposed mining tax.
Ms Gillard took over from Kevin Rudd this morning after he stood down from the leadership role rather than be voted out by his own caucus. She says the government will hold fresh consultations with mining companies but that Australians deserve a greater share of the revenue generated from the country’s resources.
The S&P/ASX 200 Index lost 6 points to finish at 4,480. And on the futures market, the SPI200’s up 14 points.
To company news around this afternoon: Global miner BHP Billiton Ltd (ASX:BHP) has withdrawn its advertising campaign against the controversial Resources Super Profits Tax, effective immediately. The move by the mining giant is a show of good faith to newly sworn in Prime Minister Julia Gillard. In her first press conference as Australia’s new PM, Ms Gillard asked the mining sector to remove the anti-tax ads, in return saying she would open the doors for fresh consultation with the industry. Ms Gillard says Australians deserve a greater share of the revenues generated from the country’s resources but that further consultation with industry representatives is needed. According to a Fairfax report, BHP says it is encouraged by Ms Gillard’s comments and looks forward to working with the government to find a solution that is in the national interest. Shares in BHP Billiton closed 1.3% higher at $39.65.
Transfield Services Ltd (ASX:TSE) says it remains on track to deliver on its full year guidance for net profit after tax to be flat to modest against its result in fiscal 2009. Following a recapitalisation of the Transfield Services Infrastructure Fund, Transfield says it has invested an additional $43.2 million in the fund representing 61.8 million shares at 70 cents a share. On this additional investment the company says it expects to receive a forecast annualised distribution yield of 11.7%. Transfield Services says its share of the final distribution for the year to June 30, 2010 from the fund will be $7.7 million. Shares in Transfield Service closed 5.66% stronger at $3.36.
Also making news: Rio Tinto Ltd’s (ASX:RIO) Coal & Allied Industries Ltd (ASX:CNA) says it is in the process of assessing the potential sale of its Oaklands coal deposit in Australia.
New Zealand based, ASX listed, building products manufacturer Fletcher Building Ltd (ASX:FBU) says it will incur an unusual tax expense of NZ$30 million in its fiscal 2010 financial result arising from significant tax changes made by the NZ Government.
Aussie coal miner Riversdale Mining Ltd (ASX:RIV) has agreed to sell a 40% stake in its Zambeze Coal project in Mozambique to China’s Wuhan Iron and Steel Corporation for US$800 million.
And Macquarie Group Ltd (ASX:MQG) shares took a tumble today after the investment bank said that market conditions are becoming increasingly uncertain and having a negative impact on parts of its business.
In the best and worst performers: The best performing sector at close was the Telco Services index, up 17 points at 1,128. The worst performer was the Real Estate Investment Trust index, down 16 points at 870.
The best performing stock in the S&P/ ASX200 was Riversdale Mining, share price as mentioned before. Shares in Macarthur Coal and Gindalbie Metals also closed higher.
The worst performing stock was Elders, shares sank 12% to close at $0.33. Shares in Isoft Group and Duet Group also closed weaker.
In commodities, gold is trading at $1,237.05 U.S an ounce, and light crude is down $0.02 at $76.37 U.S a barrel.
