The local share market has closed the session flat today following news that two key independent MP’s have decided to throw their support behind the Labour Party, giving Labour a majority to form government. Miners weakened on the news, however, the banks strengthened after the RBA decided to leave the official cash rate on hold at 4.5% this month, as expected.
The S&P/ASX 200 Index is down 2 points to finish at 4,573. And on the futures market, the SPI200 is down 16 points.
To company news around this afternoon: Reports this afternoon that Macquarie Group Ltd (ASX:MQG) has already begun cutting staff following its surprise earnings downgrade yesterday. The investment bank yesterday forecast a 25% drop in first half earnings with its full year figure expected to be broadly in line with its fiscal 2010 result. The Australian Associated Press is also reporting that brokers Morgan Stanley, UBS, JPMorgan and Deutsche Bank have cut their price targets on the stock. Shares in Macquarie Group closed 2.21% weaker at $34.47.
Grocery retail giant Woolworths Ltd (ASX:WOW) has hit a bump in the road in its plan to secure 150 sites across the country for its new big box hardware stores. A report in The Sydney Morning Herald says Victorian planning minister Justin Madden has rejected a planning permit application submitted by Woolies for a store in North Geelong. The paper says Mr Madden rejected the application on recommendations from an independent advisory committee. Last month the company said it had secured close to half of the sites for its new home improvement chain and finalised the product range to be offered. Shares in Woolworths closed 0.73% higher at $29.
Also making news: Engineering services company Norfolk Group Ltd (ASX:NFK) has been awarded a $40 million contract for the Pilbara Underground Power Project for the Western Australian town of Karratha, following a competitive bidding process.
Nickel explorer Western Areas (ASX:WSA) has announced record production of 6,278 tonnes of nickel in ore mined in July and August, exceeding the budget for the period by 60 per cent.
St Barbara Ltd (ASX:SBM) says it is planning a share consolidation in a bid to make its business more appealing to international institutional investors.
And Willmott Forests Ltd (ASX:WFL) has gone into receivership, collapsing under the weight of around $120 million debt.
In the best and worst performers: The best performing sector at close was the Financials excluding Real Estate Investment Trusts with the index up 32 points at 5,080. The worst performing sector at close was the Real Estate Investment Trust sector with the index down 12 points at 897.
The best performing stock in the S&P/ ASX200 was Virgin Blue Holdings shares were 6.17% higher at $0.43. Shares in iSOFT Group and QBE Insurance also closed higher.
The worst performing stock was Lynas Corp with shares falling 6.85% to close at $1.155. Shares in St Barbara and Transfield Services also closing weaker today.
In commodities, gold is trading at $1250 US an ounce. And light crude is down $0.89 at $73.71 US a barrel.
