The Australian share market closed weaker today after gains from the miners were offset by losses in the banks and insurers. The insurance sectors were weighed down by worries surrounding the damage bill from the Queensland floods. Queensland-insurer Suncorp was the worst performer, with both QBE and Insurance Australia Group posting losses.
The S&P/ASX200 Index is 3 points lower to close at 4,743.
Company news: Oil and gas explorer Challenger Energy Ltd (ASX:CEL) says its Triple Crown Prospect project located in Texas is exceeding expectations after drilling at its project intersected over 1000 feet of potentially gas-charged zones. The company said new drilling located 400 to 750 of total gas at depth between 1.4 kilometres and 1.7 kilometres. Challenger’s shares jumped as much as 53 per cent on the back of the news, its highest level since August 2008. Shares in Challenger Energy closed 78.13 per cent higher to $0.285.
Wesfarmers Ltd (ASX:WES) has cut its coking coal forecasts for 2011 as floodwaters affected production its Curragh coal mine in Queensland. Wesfarmers says it expects coking coal sales of between 5.8 million to 6.2 million tonnes for the year to end-June; down from an earlier forecast of 6 to 6.5 million tonnes. The company says a force majeure remains in place at its Curragh mine. Shares in Wesfarmers closed 0.56 per cent lower at $31.82.
Australia’s largest grain handler, Graincorp Ltd (ASX:GNC) says floods in Queensland have brought transportation of grains by rail and road to a halt, adding that transport of grain to port elevators from inland areas has effectively ceased and the domestic distribution network has also been impacted.
Corporate Travel Management Ltd (ASX:CTD) has acquired corporate travel services company Travelcorp Holdings for $21.7 million.
Woodside Petroleum Ltd (ASX:WPL) has halted production at oil fields off the Western Australian coast because gale force winds on Saturday showed signs of developing into a cyclone.
Rio Tinto Ltd (ASX:RIO) may need to deal with new partners in its Simandou iron ore project, after joint venture partner Aluminium Corp of China Ltd (Chalco) signed an agreement that allows it to sell up to half its stake in the venture.
In the best and worst performers: The best performing sector at close was Materials, with the index gaining 87 points to close at 14,167. The worst performing sector was Consumer Staples, the index falling 63 points to close at 7,651. The best performing stock in the S&P/ ASX200 was Lynas Corporation as shares rallied 11.56 per cent to close at $2.30. Shares in Sundance Resources and Linc Energy also advanced today. The worst performing stock was Emeco Holdings as shares lost 4.63 per cent to close at $1.03. Shares in Elders Ltd and Platinum Asset Management also closed in the red today.
In commodities, gold is trading at $US1,416 an ounce. Light crude is up $0.12 at $US91.67 a barrel.
