The Australian share market closed lower today, breaking four consecutive sessions of gains. Despite an encouraging lead on the tail of Wall St’s overnight gains, Aussie shares slid with miners leading the way on softer commodities.
The S&P/ASX 200 Index is down 30 points to finish at 4,380. And on the futures market, the SPI200 is down 27 point.
In economic news: According to data released by the ABS today, personal finance commitments fell 0.6% in May.
To company news around this afternoon: Iron ore miner Gindalbie Metals Ltd (ASX:GBG) says the estimated project construction cost for stage one of the development of the Karara Iron Ore project has been revised up to $1.975 billion. This compares to previous guidance of $1.648 billion in its 2007 bankable feasibility study. Gindalbie also says it expects to award $300 million in new construction, equipment, and services contract in the September quarter. Total commitments for the project are anticipated to reach $1 billion following the award of $700 million worth of contracts in the June quarter.Shares in Gindalbie Metals closed down 2.45% at $0.995
WDS Ltd (ASX:WDS) has been awarded a two year contract at BHP Billiton’s (ASX:BHP) Illawarra Coal Dendrobium Mine. WDS says the expected revenue from the contract is expected to be $10 million over the two year period, with a possible extension for a third year. The umbrella contract will include Longwall Block Management and Outbye Services in the New South Wales Illawarra region. The company anticipates an early start to the contract with various equipment and work crews already fully mobilised at Dendrobium Mine. Shares in WDS closed 9.78% lower at $0.415
Also making news: Sundance Resources Ltd (ASX:SDL) has appointed Fiona Harris as a non-executive director of the board and says it will announce shortly when shareholders will be given the opportunity to vote on the election of directors.
Aurora Funds Ltd (ASX:AFV) has today listed on the Australian Securities Exchange at an issue price of $2.00 a share. Aurora was created through the combination of asset managers; Sandringham Capital Pty Ltd, Fortitude Capital Pty Ltd and Auroa Funds Management Ltd. According to Reuters, National Australia Bank (ASX:NAB) is to boost its investment in its British subsidiary Clydesdale by up to $581 million, the investment approved by UK regulators earlier this month.
Manufacturing company Alcoa Inc (ASX:AAI) posted a profit of US$136 million for the three months to June 30, compared to a loss of US$454 million for the same time last year. In the best and worst performers: The best performing index at close was the Health Care sector, up 100 points at 8,300. The worst performing index was the Materials sector, down 256 points at 11,500.
The best performing stock in the S&P/ ASX200 was Downer EDI, shares rose 6.18% to $3.95. Shares in Sigma Pharmaceuticals and Duet Group also closed higher.
The worst performing stock was ISoft Group, shares fell 13.51% to close at $0.16. Shares in Roc Oil Company and White Energy also closed weaker today.
In commodities, gold is trading at $1,199.55 U.S an ounce, and light crude is down $0.36 at $74.59 U.S a barrel.
