The local share market has closed the session weaker today as concern for the global economy and its prospects weigh on investors. The market jumped early, on the back of a data provider error which sent the market up to its best level since mid-April.
The S&P/ASX 200 Index fell 29 points to finish at 4,385. And on the futures market, the SPI200’s down 40 points.
In economic news: The Housing Industry Association released its National Outlook Report on Australia’s housing sector today saying all indications are that the new home building recovery will stall in 2011. The report showed housing starts are forecast rise by 20% in 2010 before falling by 3% in 2011.
To company news around this afternoon: Port and rail operator Asciano Group (ASX:AIO) says it has completed the restructuring of its bank facilities. The company says the restructure allows for the release of security held by the bank syndicate and removes the ban on borrowing outside the existing facilities. CEO Mark Rowsthorn says the amendments provide the company with flexibility to fund Asciano’s significant growth profile and allow it to refinance its $2.25 billion debt maturing in May 2012 in the debt capital markets. Asciano also says it plans to simplify its corporate structure by converting from a stapled security structure into a single holding company. Shares in Asciano Group closed 0.9% higher at $1.69.
Aussie coal miner Whitehaven Coal Ltd (ASX:WHC) has announced that coal production has commenced at its Narrabri Mine in north-west NSW. The company says, when in full production, the mine is expected to produce around 6 million tonnes per annum of low ash, high energy, low sulphur thermal and PCI coal for the export market. Whitehaven has invested around $227 million over the last three years to deliver a modern underground mine with the highest safety levels and most efficient mining practices available. As part of the development, a rail loop and associated coal handling and processing equipment has been constructed to facilitate the transport of coal from the project site to Newcastle for export. Stage two plans for the project, says Whitehaven, include the production of an additional 5.3 million tonnes per year from longwall mining. Shares in Whitehaven Coal closed 3.59% weaker at $4.84.
Also making news: Everest Financial Group (ASX:EFG), formerly Everest Babcock and Brown, has decided to close its doors following a strategic review into the business.
Shares in Bauxite Resources Ltd (ASX:BAU) slumped today after litigation funder IMF Australia said it will fund claims that current and former shareholders may have against the company.
Paint maker Wattyl Ltd (ASX:WYL) has agreed to a $142 million takeover by US paint company Valspar Corp.
And Telstra’s (ASX:TLS) chief executive David Thodey says the telecommunications company will consider future acquisitions to add growth, following its $11 billion National Broadband Network (NBN) deal. In the best and worst performers: All sectors closed in the red today, however the sector at close with the smallest loss was the Consumer Staples index, down a point at 7,485. The sector with the biggest loss was the Utilities index, down 73 points at 4,074.
The best performing stock in the S&P/ ASX200 was Elders, shares rose 4.11% to $0.38. Shares in Sigma Pharmaceuticals and Equinox Minerals also closed higher.
The worst performing stock was Gunns, shares fell 6.56% to close at $0.57. Shares in Medusa Mining and Infigen Energy also closed weaker today.
In commodities, gold is trading at $1,255.90 U.S an ounce, and light crude is down $0.13 at $78.73 U.S a barrel.
