The Australian share market closed 0.6 per cent weaker, dragged down by the miners on lower commodity prices. Also, Reserve Bank board member Donald McGauchie today cautioned that the severe weather conditions in Queensland are likely to have a significant impact on Australia’s economy.
The S&P/ASX200 Index dropped 28 points to close at 4,715. On the futures market, the SPI is 23 points lower.
Economic news: The Housing Industry Association Jeld-wen New Home Sales Report has shown the number of new homes sold dropped 0.2 per cent in November 2010, following the RBA’s rate hike. Detached house sales dropped 1.1 per cent, while sales of multi-unit housing lifted 8.1 per cent in the period. Over the three months to November 2010, new home sales dropped by 2 per cent to be 11 per cent lower, compared to the same time the year before.
Company news: Macarthur Coal Ltd (ASX:MCC) has warned that its first half earnings are likely to fall at the lower end of guidance, affirming a force majeure remains in place due to heavy rain in Queensland. The coal miner now expects first half net profit will be closer to $97 million, rather than the upper end of guidance at $102 million. Shares in Macarthur Coal slipped 1.71 per cent to close at $12.65.
The flood crisis in Queensland is also being attributed for a half year profit downgrade by AJ Lucas Group Ltd (ASX:AJL). The mining services provider says EBITDA for the six months to 31 December 2010 will be around $3 million, compared to $42.5 million recorded for the same period in 2009. Delays in approvals for infrastructure projects have also been blamed for the anticipated fall in earnings. Shares in AJ Lucas Group lost 2 per cent to close at $2.45.
The Warehouse Group Ltd (ASX:WHS) has downgraded its half-year earnings forecast. The retailer now expects to deliver between $39 million to $41 million in net profit for the six months to 30 January this year.
Lend Lease Group (ASX:LLC) says any liabilities that have come as a result of helping in the recovery and debris removal of the World Trade Centre, following the 9/11 terrorist attacks, will be limited to available insurance.
Rio Tinto Ltd (ASX:RIO) has completed the sale of a 61 per cent stake in Alcan Engineered Products to a number of investment funds.
Spanish construction giant ACS has increased its share in Leighton Holdings Ltd (ASX:LEI) parent company, Hochtief, to 30 per cent, taking a key step in its takeover bid.
In the best and worst performers: The best performing sector at close was Real Estate Investment Trusts, with the index up 7 points to close at 841. The worst performing sector was Energy, the index dropping 176 points to close at 16,019. The best performing stock in the S&P/ ASX200 was Murchison Metals shares improved 5.02% to close at $1.36. Shares in Alumina and Graincorp also rose today. The worst performing stock was Lynas Corporation shares lost 6.09% to close at $2.16. Shares in Intrepid Mines and Emeco Holdings also closed weaker today.
In commodities, gold is trading at $US1,384 an ounce. And light crude is down $0.13 at $US89.25 a barrel.
