Market Wrap: Aus shares close lower

Market Reports

The Australian share market closed a little over half a per cent lower today, led by weakness in Consumer Discretionary stocks.

The S&P/ASX 200 Index is down 29 points to finish at 4,542. And on the futures market, the SPI200 is down 19 points.

In economic news: The Australian Industry Group/Commonwealth Bank performance of services index dropped 2.2 points to 46.6 points in July, the third consecutive month below 50.

To company news around this afternoon: Hutchison Telecommunications (Aus) Ltd (ASX:HTA) has announced a $17.9 million profit for the first half of the year, largely the result of its 50% holding in Vodaphone Hutchison Australia. Hutchison reports that its share of the revenue in the merged entity grew by 24% year-on-year to over $1 billion, with full year operating margin up 36% to over $828 million. Shares Hutchison Telecommunications in are up 14.13% at $0.105.

Brickworks Ltd (ASX:BKW) has acquired two precast concrete panel businesses from Boral Ltd (ASX:BLD) for $18.8 million. The sale of Boral’s Girotto and Gocrete businesses will be completed by the end of the month, and includes land and buildings but excludes stock. Brickworks says it plans to merge the businesses with its existing Sasso Precast Business and will be re-branded Austral Precast. Managing Director Lindsay Partridge says Brickworks plan to add substantial national scale and market presence to its precast concrete panels business. Shares in Brickworks are up 0.67% at $11.99.

Shares in Kathmandu Holdings Ltd (ASX:KMD) have fallen sharply 13.4% on the day, following a warning from the outdoor clothing retailer that pre-tax earnings will drop 7% lower than forecast for the year ended 30 June 2010.

Ivanhoe Australia Ltd (ASX:IVA) has announced a 43% increase in its Merlin Deposit in Queensland due to higher grades. Chairman Peter Reeve says the upgrade represents a substantial improvement to the projects economics.

Rio Tinto Ltd (ASX:RIO) says it plans to invest a further $864.23 million to expand the annual capacity of iron ore operations in the Pilbara region, to 330 million tonnes a year.

AXA Asia Pacific Holdings Ltd (ASX:AXA) has reported a 19% fall in profit after tax, to $219 million for the six months to 30 June.

In the best and worst performers: The best performing sector at close was the Telco Services index, up 11 points at 1,119. The worst performing sector was Consumer Discretionary index, down 20 points at 1,516.

The best performing stock in the S&P/ ASX200 was Whitehaven Coal shares rose 6.11% to $5.73. Shares in AWE Ltd and Mineral Resources also closed higher. The worst performing stock was Linc Energy, shares fell 6.18% to close at $1.745. Shares in Platinum Australia and Western Areas also closed weaker today.

In commodities, gold is trading at $1192 U.S an ounce, and light crude is down $0.51 at $82.04 U.S a barrel.

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