The local share market has closed in the red today, its eighth straight session of losses, as investor concern for the global economy and its prospects heighten. Declines in the banks and mining stocks weighed on the market although news that significant progress has been made in talks on the proposed mining tax helped to reduce losses in the mining sector.
The S&P/ASX 200 Index fell 64 points to finish at 4,238. And on the futures market, the SPI200’s down 47 points.
To company news around this afternoon: Reports are circulating that a compromise may have been reached on the controversial Resources Super Profits Tax. According to a Fairfax report, the federal government under the leadership of new PM Julia Gillard, and mining giants BHP Billiton Ltd (ASX:BHP), Rio Tinto Ltd (ASX:RIO) and Xstrata have agreed on key elements of the proposed tax. These include a new point at which the tax kicks in, set at the 10 year Commonwealth bond yield plus 7%. It is also being reported that the government has resolved miners concerns that the tax will be retrospective in its application, allowing miners to inject their existing assets into the revised tax regime at market value. Shares in BHP Billiton closed 1.43% lower at $37.11.
Surf wear company Billabong International Ltd (ASX:BBG) has announced the acquisition of Canadian clothing label West 49 for $110.4 million. The company says the acquisition of West 49, one of Billabong’s existing retail partners in Canada, is expected to be earnings per share accretive in fiscal 2011 and is an important step in its strategic evolution. Billabong is hoping the acquisition will boost sales in the North American market where a poor performance contributed to the company’s drop in earnings for the half year. Shares in Billabong International closed 2.75% weaker at $8.50.
Also making news: Gold producer North Queensland Metals Ltd (ASX:NQM) says drilling at its 60% owned Pajingo joint venture in QLD has uncovered bonanza-grade intercepts supporting the company’s belief that a recent takeover offer from Conquest Mining undervalued the project and its future prospects.
Toro Energy Ltd (ASX:TOE) says it has begun discussions with a number of international buyers for uranium ore from its Wiluna project in Western Australia.
Grocery and liquor wholesaler Metcash Ltd (ASX:MTS) has acquired the Franklins supermarket chain in NSW for around $215 million.
And construction and contract mining company Leighton Holdings Ltd (ASX:LEI) has been awarded two major infrastructure contracts in India worth US$550 million.
In the best and worst performers: Majority of sectors closed in the red today, however the only sector at close in the black was the Utilities index, up 30 points at 4,089. The sector with the biggest loss was the Telco Services index, down 23 points at 1,074.
The best performing stock in the S&P/ ASX200 was Energy World Corp, shares rose 6.67% to $0.40. Shares in Mincor Resources and Oz Minerals also closed higher.
The worst performing stock was Murchison Metals, shares fell 6.97% to close at $1.87. Shares in Biota Holdings and Aquarius Platinum also closed weaker today.
In commodities, gold is trading at $1,239.75 U.S an ounce, and light crude is down $0.81 at $74.82 U.S a barrel.
