The Australian share market closed half a percent lower today, as miners and banks dragged stocks lower. Uncertainty surrounding the upcoming Federal election also weighed on investors.
The S&P/ASX 200 Index is down 21 points to finish at 4,439. And on the futures market, the SPI200 is down 10 points.
In economic news: The Australian Bureau of Statistics has reported that new motor vehicle sales dropped 2.6% in July to 85,019 units, seasonally adjusted. For the 12 months to July, new motor vehicle sales increased 11.6%.
To company news around this afternoon: Graincorp’s (ASX:GNC) takeover plans for AWB Ltd (ASX:AWB) have reached a hurdle, with Canadian agribusiness Agrium issuing a superior proposal. Agrium’s conditional proposal is for the acquisition of all the issued capital of AWB for $1.50 per share, valuing the company at $1.2 billion, and will require approval from Australia’s Foreign Investment Review Board. In contrast, Graincorp has proposed a nil-premium merger in which AWB shareholders would receive one GrainCrop share for every 5.75 AWB shares, valuing the company at around $860 million. Graincorp says today, that its merger implementation deed remains on foot, and that AWB directors have not withdrawn their recommendation that shareholders vote in favor of the merger with Graincorp. Shares in Graincorp closed 4.15% up at $6.53.
iiNet Ltd (ASX:IIN) has reported 36% underlying net profit after tax growth to $34.8 million for the year to 30 June. The telecommunications company has also posted a 13% increase in revenue to $474 million, and, a 27% increase in subscriber services to 960,000 for the last financial year. A fully franked final dividend of 6 cents per share has been declared. Chief executive Michael Malone says the recent AAPT consumer division and Netspace acquisitions have enabled the company to move closer to reaching a 15% DSL internet market share. Mr Malone adds that such acquisitions position iiNet on a rapid path to becoming a leading challenger brand in its sector. Shares iiNet Ltd in closed 3.08% up at $2.68.
Also making news: Gunns Ltd (ASX:GNS) has announced it will sell its Tamar Ridge wine business to Brown Brothers Milawa Vineyards Pty Ltd for $32.5 million, and says it expects to report $28 million profit after tax for the 2010 financial year, when Gunns releases its annual results this Wednesday.
Sundance Resources Ltd (ASX:SDL) shareholders have ratified the appointments of the company’s caretaker board, following the tragic death of former board members in a plane crash in June. George Jones has been appointed as chairman, while previous chief financial officer, Peter Canterbury will for now continue as chief executive.
Leighton Holdings Ltd (ASX:LEI) has reported 39% growth in net profit to a record $612 million for the year ended 30 June 2010, with its wholly owned subsidiary Thiess finalising an $825 million contract for construction on the Hunter Expressway project in NSW.
Gold and copper producer Newcrest Mining Ltd (ASX:NCM) says the 2010 financial year has been a success, reporting record net profit of $557 million, up 124% on the year before.
In the best and worst performers: The best performing sector at close was the Energy index, up 104 points at 14,924. The worst performing sector was the Financials Excluding Real Estate Investment Trusts index, down 58 points at 4,895. The best performing stock in the S&P/ ASX200 was AWB shares rose 29.68% to $1.42. Shares in Elders and Transpacific Industries Group also closed higher.
The worst performing stock was Panoramic Resources, shares fell 5.95% to close at $2.37. Shares in Energy World Corporation and Mirabela Nickel also closed weaker today.
In commodities, gold is trading at $1220 U.S an ounce, and light crude is up $0.48 at $75.87 U.S a barrel.
