The Australian share market has closed lower as uncertainty over Europe’s sovereign debt continue to trouble investors coupled with fears of weaker demand from China. A lack of local data to provide direction or investor confidence also saw shares lose ground.
The S&P/ASX 200 Index closed 54 points lower to finish at 4,589. On the futures market, the SPI200 is down 64 points.
Troubled pharmaceutical giant Sigma Pharmaceuticals (ASX:SIP) has slashed its earnings guidance for the 12 months to January 2011. The company says earnings before interest and tax would be $120 million to $130 million, a decrease from the previous guidance of $140 million to $150 million. Sigma has also announced that it has formalised the $900 million sale of its generic drug business to South Africa’s Pharmacare to close by January 31, 2011.Shares in Sigma Pharmaceuticals closed steady at $0.46.
ANZ Banking Group (ASX:ANZ) is reportedly facing pressure to make an offer for a stake in Korea Exchange Bank. Bloomberg reported that rival suitor Hana Financial Group is close to an agreement to acquire Lone Star’s 51 per cent stake in Korea Exchange Bank. Hana’s chief executive officer Kim Seung Yu says the company is likely to sign a stake purchase agreement on November 24 and that the agreement will be a binding one. The 51 per cent stake is valued at $3.7 billion and market analysts believe Hana will pay around $4.2 billion for it. Hana has not yet commented on how much it is paying for the stake or how it will finance the purchase.Shares in ANZ Bank closed 0.62 per cent lower at $22.34.Myer Holdings Ltd (ASX:MYR) has restructured its executive management team in a bid to support the department store chain through its next stage of development. All new appointments will report to Myer’s CEO Bernie Brookes.
Global media giant News Corporation Ltd (ASX:NWS) has announced it will acquire 90 per cent of US-based education technology company Wireless Generation for $365 million.
Australian property giant Stockland Group Ltd (ASX:SGP) says it on track to meet its fiscal 2011 guidance of 7 per cent earnings per share growth.Grocery wholesaler Metcash Ltd (ASX:MTS) is continuing to pursue its attempted takeover of Franklins despite opposition from the competition watchdog.
In the best and worst market performers: The best performing sector was Telco Services which closed 25 points higher to 947. The worst performing sector was Materials with the index falling 227 points to 13,317.The best performing stock in the S&P/ ASX200 was Auscenco as shares were 5.51 per cent higher at $2.87. Shares in Infigen Energy and Elders also closed higher.The worst performing stock was ISOFT down 9.3 per cent to 7.8 cents. Shares in Cudeco and PanAust also closed in the red.In commodities, gold is trading at $US1,358 an ounce. Light crude is down $0.61 at $81.13.
