The Australian share market closed lower today on concern for the US economic recovery on weakness in Asian markets. Investors showed caution following news that Prime Minster Julia Gillard is this weekend expected to call a general election for late August. The S&P/ASX 200 Index is down 20 points to finish at 4,423 up 26 points for the week. And on the futures market, the SPI200 is down 28 points.
Looking to the U.S. and on Wall Street, the Dow Jones industrial index closed 161 points up for the four trading days this week. The S&P500 Index up 19 points, the NASDAQ is up 53 points and the 100 index is up 41.
To company news: The Paralana Project, a joint venture between Beach Energy Ltd (ASX:BPT), Petratherm and TRUenergy Geothermal has received $62.8 million in funding. Beach Energy says the grant, under the Commonwealth Government’s Renewable Energy Demonstration Program, was signed earlier today. The funding provided under the program is on a two to one basis, with the Paralana Project investment being $2 for every $1 provided under the grant. Shares in Beach Energy closed flat at $0.70.
ING Real Estate Entertainment Fund (ASX:IEF) says it plans to curb its debt by raising $65 million in new equity and selling its New Zealand assets. The fund says it plans to raise $38.8 million at $0.09 per unit comprising of a $2.4 million placement and $36.4 million rights issue. The company says it expect to make $26.3 million through the sale of its New Zealand Portfolio. Shares in ING Real Estate Entertainment Fund closed 4.49% down at eight and a half cents ($0.085)
Iron ore company Sundance Resources Ltd (ASX:SDL) has been given the green light for an Iron Ore Project in West Africa, with the Government of the Republic of Cameroon giving their environmental approval.
MetroCoal Ltd (ASX:MTE) has also received major approval for its proposed $30 million coal mining joint venture with China Coal Import and Export Company. MetroCoal says that discussions are underway to finalise the remaining necessary Chinese government approval.
National Australia Bank (ASX:NAB) says it in discussions with AXA Asia Pacific Holdings Ltd (ASX:AXA) in relation to a further extension to its $13.3 billion takeover bid. NAB is hoping to extend the period of negotiations so it can satisfy concerns raised by the Australian Competition and Consumer Commission.
Riversdale Mining Ltd (ASX:RIV) has announced it will fund its Benga coal project by selling $337 million of new shares with a fixed offer price of $9.40 a share.
In the best and worst performers: All indices closed in the red today. The index with the smallest loss at close was the Industrials sector, down 1 point at 3,389. The index with the biggest loss at close was the Telco Services down 9 points at 1,105.
The best performing stock in the S&P/ ASX200 was Avoca Resources, shares rose 4.29% to $2.92. Shares in ISoft Group and Ardent Leisure also closed higher. The worst performing stock was Sigma Pharmaceuticals, shares fell 11.58% to close at $0.42. Shares in Nufarm and Linc Energy also closed weaker today.
The Australian Dollar is trading at 87.53 US cents, down under a cent on the week.
In commodities, gold is trading at $1,207.75 U.S an ounce and is down $3.75 on the week. Light crude is down $0.31 at $76.31 U.S a barrel.
