The Australian share market reversed gains made earlier today and headed for a second weekly loss in a row as financial stocks lead the way lower. Despite firmer commodity prices at midday and a rally on Wall Street, the market lost ground, with all the Big Four Banks closing in the red.
The S&P/ASX 200 Index closed 11 points lower to finish at 4,629 which is down 64 points on the week. On the futures market, the SPI200 down 6 points. To the US markets and the Dow Jones Index is down 11 points, the S&P/500 is down 3 points, NASDAQ is down 4 points and the 100 Index is down 3 points.
Perth-based Murchison Metals Ltd (ASX:MMX) has secured over a $100 million bridging facility to progress studies for its iron ore and infrastructure plans. The facility is set to be provided by the miners’ largest shareholder, Denver-based Resource Capital Funds. The bridging facility will be used to fund Murchison’s feasibility studies for its expansion, port and rail infrastructure projects. Murchison’s shares raced higher on the financing news and closed 4.72 per cent higher at $1.22.
Telstra Corporation Ltd’s (ASX:TLS) largest shareholder, the Future Fund, has turned against the company and voted against all resolutions put to shareholders at the firms’ annual general meeting today. Telstra’s shares surged this morning after the telecommunications giant confirmed it would maintain its prized dividend for at least two years. But Future Fund, which owns around 10 per cent of Telstra shares, opposed every major resolution at today’s meeting. Shares in Telstra closed 2.34 per cent higher at $2.62.
Fortescue Metals Group Ltd (ASX:FMG) has approved plans to spend $8.5 billion on expanding the company’s iron ore operations in the Pilbara region in Western Australia.
Bell Financial Group Ltd (ASX:BFG) is merging its Southern Cross Equities business with its Bell Potter stockbroking unit into a single brand in order to boost revenue.
Virgin Blue Holdings Ltd (ASX:VBA) is replacing Qantas as the Australian Football League’s (AFL) official airline from early next year, in a deal worth around $7 million.
Telstra Corporation Ltd (ASX:TLS) has forecast a fall in earnings for the first half of the 2011 financial year, but expects customer numbers will increase.
In the best and worst market performers: The best performing sector was Telco Services which closed 17 points higher to 911. The worst performing sector was Utilities with the index falling 36 points to 4,457. The best performing stock in the S&P/ ASX200 was Invocare as shares were 5.5 per cent higher to $7.29. Shares in Murchison Metals and Riversdale also closed higher. The worst performing stock was St Barbara down 4.3 per cent to $44.50. Shares in Infigen Energy and Mt Gibson also closed in the red.
In commodities, gold is trading at $US1,354 an ounce. It is down $US14 on the week. Light crude is down $0.28 to $81.57. The Aussie dollar is buying 98.5 US cents which is down less than 1 cent on the week.
