Market Wrap: Aus shares close lower

Market Reports

The local share market has been unable to hold onto earlier gains, slipping into the red this afternoon on weakness in the banks.

The S&P/ASX 200 Index is 25 points lower to finish at 4,645. On the futures market, the SPI200 is down 31 points.

To company news: NGM Resources Ltd (ASX:NGM) says it will challenge Paladin Energy Ltd (ASX:PDN) withdrawal from a takeover bid for NGM. Last Friday Paladin announced it would not continue with its takeover offer for the uranium explorer due to terrorist activities in Niger where NGM is exploring. Forces associated with Al-Qaida kidnapped seven employees of uranium company Areva and its construction contractor Vinci in Niger. NGM says it will apply to the Takeover’s Panel to challenge the validity of the defeating conditions of the offer. NGM says while the recent events are regrettable, the risks associated with doing business in Niger are well known and the company believes that there is currently no basis to believe its operations in the region have been, or are likely to be, materially affected by these events. Shares in NGM Resources closed 38.67% weaker at $0.09 today.

Qantas Airways Ltd (ASX:QAN) CEO Alan Joyce says the company is experiencing a rise in international yields. According to a report in The Australian, Mr Joyce told a business forum today that international yields have risen 12 to 14 per cent. He cautioned, however, that business remains tough for the industry, a strong Aussie dollar having a negative impact on revenue. Shares in Qantas Airways closed 0.36% higher at $2.76.

Also making news: Astro Japan Property Group (ASX:AJA) has sold two offices in Tokyo for $57 million with the proceeds to go towards paying off a loan due to mature in December.

Kristy Fraser-Kirk, the publicist behind the sexual harassment case brought against Department store David Jones Ltd (ASX:DJS) and its former CEO, has lost her bid to keep the names of witnesses in her $37 million case, confidential.

Sigma Pharmaceuticals Ltd (ASX:SIP) has booked a $218.5 million loss for the first six months of 2010, impacted by a $220 million impairment charge and competition in the drugs industry.

And Telstra Ltd (ASX:TLS) says it intends to maintain its annual dividend of 28 cents, following encouraging signs in sales growth.

In the best and worst performers: The best performing sector at close was Utilities, the index up 10 points to 4,491. The worst performing sector at close was Consumer Staples with the index down 133 points to 8,263.

The best performing stock in the S&P/ ASX200 was Medusa Mining shares were 5.32% higher at $4.95. Shares in Eldorado Gold and Ardent Leisure also closed higher.

The worst performing stock was Elders shares closed 6.35% lower at $0.59. Shares in Nufarm and Goodman Fielder also closed weaker today, Goodman Fielder going ex-dividend today.

In commodities, gold is trading at $1311 US an ounce. And light crude is up $0.19 at $76.37 US a barrel.


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