Aussie shares have closed the session deep in the red this afternoon ahead of the G20 meeting in Canada this weekend, with uncertainty surrounding the mining tax causing investor nerves to fray.
Material stocks were the biggest losers of the day, with giants BHP and Rio both weaker.
The S&P/ASX 200 Index closed 67 points lower at 4,413, down 139 points on the week, while on the futures market, the SPI200’s down 71 points.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 298 points weaker for the four trading days this week. The S&P500 Index down 44 points, the NASDAQ is 92 points lower and the 100 index lost 69.
To company news around this afternoon: Copper, gold explorer Indophil Resources NL (ASX:IRN) is on the hunt for a potential buyer of its interest in the Tampakan Copper-Gold Project after Zijin Mining Group decided not to proceed with a $545 million takeover of the company. Indophil says given the lengthy delay in securing Chinese provincial approval for Zijin’s offer for Indophil, and no clear timeframe forthcoming, both parties have agreed to terminate the agreement. The miner says in light of the decision it will now open the doors to other parties who may be interested in acquiring its 37.5% stake in the Tampakan Copper-Gold Project. Indophil recently submitted a final feasibility study confirming the project as one of the largest and most significant undeveloped copper projects in the world. Shares in Indophil Resources are in a trading halt and last traded at $1.095.
Guinness Peat Group (ASX:GPG) director Tony Gibbs has told the New Zealand stock exchange that plans to demerge GPG Australia does not have the support of shareholders and is not likely to succeed. The company announced the proposed demerger of its Australian operations and listing of the business separately on the Australian and New Zealand stock exchange’s as GPG Group Australia this week. According to The Australian Mr Gibbs says investors are not happy with the announcement because they believed they had been promised that capital would be released. In a statement to the ASX, Guinness Peat made it clear they did not approve Mr Gibbs comments and they do not reflect the opinions of the board. Shares in Guinness Peat Group closed 2.88% stronger at $0.535.
Also making news: The Reject Shop Ltd (ASX:TRS) has announced the retirement of Chairman Brian Beattie and reaffirmed its earnings guidance for net profit after tax of $22.5 million for the 2010 financial year.
And according to reports a senior executive of China’s Bright Food Group has met with CSR Ltd (ASX:CSR) this week in an effort to get its bid for the company’s sugar business Sucrogen, across the line.
Taking a look back at some of the stories that made headlines this week: Perpetual Ltd (ASX:PPT) CEO announced his resignation for personal reasons.
Elders Ltd (ASX:ELD) says it expects to post a full year loss, announcing a number of job cuts as it moves towards a leaner structure of management.
And Kerry Stokes’ Seven Group Holdings Ltd (ASX:SVW) is set to become a cornerstone investor in Agricultural Bank of China.
In the best and worst performers: All sectors closed in the red today, however the sector at close with the smallest loss was the Utilities index, down 2 points at 4,147. The sector with the biggest loss at close was the Materials index; down 206 points at 11,819.
The best performing stock in the S&P/ ASX200 was Elders, shares rose 10.61% to close at $0.365, followed by Lynas Corp and Challenger Financial Services Group.
The worst performing stock was iSOFT Group, shares dropped 7.89% to close at $0.175. Shares in Caltex Australia and Platinum Australia also closed weaker today.
And finally, the Aussie dollar is trading at 86.26 US cents - and is down almost a cent on the week. In commodities, gold is trading at $1,242.90 U.S an ounce and is down $13.45 on the week, and light crude is down 31 cents at $76.20 U.S a barrel.
