The Australian share market closed lower for the third consecutive day, ending 1.2% down: telco’s leading the losses with a slide of almost 9%, on the back of Telstra’s weak annual profit result. Overseas economic recovery concerns continued to weigh on investors, while locally an unexpected rise in the RBA’s unemployment rate fuelled further unease.
The S&P/ASX 200 Index is down 55 points to finish at 4,401. And on the futures market, the SPI200 is down 75 points.
To company news around this afternoon: Shares in Telstra (ASX:TLS) have taken a dive today, following the announcement of a 4.7% fall in the telco’s full year net profit. Australia’s largest telecommunications company today posted a $3.88 billion profit for the year ended 30 June, below the $4.07 billion reported for the same time last year. Earnings before interest and income tax expense were $6.5 billion, representing a decline of 0.9% on the prior year result. CEO David Thodey describes the year as tough, with many significant challenges. Shares in Telstra closed 9.54% down at $2.94.
Atlas Iron Ltd (ASX:AGO) has received Federal Court approval for its planned takeover of Aurox Resources Ltd (ASX:AXO), in a deal expected to be worth near $144 million. Both companies today released a joint statement announcing the scheme of arrangement, advising that tomorrow will be the last day of trading for Aurox to be followed by a suspension of trading securities. Both Atlas and Aurox say they welcome the courts approval and look forward to the merger. The scheme implementations date is expected to be on 24 August. Shares in Atlas Iron closed 0.93% down at $2.14.
Also making news: Ramelius Resources Ltd (ASX:RMS) has upgraded its annual profit guidance to an expected profit before tax of $28.7 million for the year to 30 June, up from $7.1 million reported for the same period last year.
Sigma Pharmaceuticals Ltd (ASX:SIP) has responded to media speculation that Aspen Pharmacare Holdings Ltd has made an unconditional takeover bid of 65 cents per share. Sigma says this is incorrect, though advises that it remains in discussions with Aspen while also continuing to consider other options.
Coca-Cola Amatil Ltd (ASX:CCL) has posted a record net profit after tax for the first half of the year, 12% up to $212.7 million.
Transurban Group (ASX:TCL) has reported significant full year growth, up 342% from 2009, to a net profit of $59.4 million for the year to 30 June.
In the best and worst performers: All indices closed in the red today. The sector with the smallest losses at close was the Consumer Staples index, down 5 points at 7,526. The worst performing sector was the Telco Services index, down 95 points to 1,006.
The best performing stock in the S&P/ ASX200 was Sigma Pharmaceuticals shares rose 7.78% to $0.485. Shares in Myer Holdings and Coca-Cola Amital also closed higher. The worst performing stock was Telstra, shares as mentioned before. Shares in James Hardie Industries and Gunns also closed weaker today.
In commodities, gold is trading at $1199 U.S an ounce, and light crude is down $0.49 at $77.53 U.S a barrel.
