The Australian share market closed half a per cent lower today, investors remaining cautious ahead of next week’s US stimulus announcement due from the Federal Reserve and upcoming US mid-term elections. Locally the majority of sectors closed in the red, while Macquarie Group lifted on a better than expected first half profit.
The S&P/ASX 200 Index closed 23 points down to finish at 4,662, but came in 13 points higher points for the week. On the futures market the SPI200 is down 25 points.
Looking to the US and on Wall Street, the Dow Jones industrial index is down 19 points for the four trading days this week. The S&P500 Index is up 1 point, the NASDAQ up 28 points and the 100 index up 26.
To company news: Tatts Group Ltd (ASX:TTS) says it is moving nicely into the current financial year recording improved revenue and profits in its first quarter. In fiscal 2010 the gaming machine operator recorded a modest 0.8% rise in net profit to $282.4 million, a number of one-off items impacting the result. However, Tatts says much of what it did in the period stands it in good stead for the current financial year and beyond, adding that the scene is set for a significant increase in fiscal 2011 EBITDA, which analysts expect to increase from $560 million to $650 million. Shares in Tatts Group closed 1.19% lower at $2.50.
Woodside Petroleum Ltd (ASX:WPL) has announced that it has struck a deal to wholly acquire an exploration permit in the Carnarvon Basin, located off Western Australian. The liquefied natural gas producer will purchase the remaining 50 per cent interest from Hess Exploration, taking its interest to 100 per cent. Details of the purchase amount have not been released. The acquisition is expected to be completed on 5 November and is consistent with its drive to obtain sufficient gas volumes to support potential expansions of the Pluto LNG Park. Shares in Woodside Petroleum closed 1.43% lower at $43.50.
Also making news from annual general meetings today: Origin Energy Ltd’s (ASX:ORG) chairman Kevin McCann has confirmed the oil and gas producer is on track to meet its fiscal 2011 guidance of a 35 per cent lift in EBITDA and a 15 per cent rise in profit.
CEO of Toll Holdings Ltd (ASX:TOL) Paul Little has cautioned conditions in Australia outside the resource sector remain flat, with its major retail customers experiencing slower than expected pre-Christmas build up.
Looking back at some earlier headlines: Following a series of profit warnings, Macquarie Group Ltd (ASX:MQG) has surpassed its half year forecast to report a 16 per cent drop in profit to $403 million.
Whitehaven Coal Ltd (ASX:WHC) has delivered an 11 per cent increase in its first quarter coal production, and, today announced it would move to formalise the process for potential bidders to approach the coal mining company.
In the best and worst performers: The majority of sectors closed in the red, the sector with smallest loss at close was Materials, with the index down 25 to 13,128. The worst performing sector was Telco Services with the index down 12 point to 921. The best performing stock in the S&P/ ASX200 was Cudeco shares gained 11.16% to close at $2.39. Shares in Whitehaven Coal and Macquarie Group also closed higher. The worst performing stock was Gunns shares closed 7.53% weaker at $0.675. Shares in Lynas Corporation and Panoramic Resources also closed lower today.
The Australian Dollar is trading at 97.64 US cents, down one cent on the week and in commodities, gold is trading at $1339 US an ounce which is up $12.00 on the week. Light crude is down $0.47 at $81.71 US a barrel.
