The Australian share market closed 0.8 per cent lower today. Despite positive offshore leads Aussie shares sunk into the red as concerns over flooding damage across the country’s eastern seaboard weighed on investors, with Treasurer Wayne Swan warning the floods look set to be the nation’s costliest natural disaster. The S&P/ASX200 Index eased 38 points to close at 4,763. On the futures market, the SPI is 45 points lower.
In economic news: The Australian Bureau of Statistics has reported total personal finance commitments added 2.2 per cent in November, seasonally adjusted to $7.8 billion. Also out from the ABS, sales of new motor vehicles lifted 0.8 per cent in December to the strongest read in six months. In the last month of 2010, 86,440 vehicles were sold in Australia. The TD Securities-Melbourne Institute inflation gauge rose 0.2 per cent in December. In the 12 months to December the rate of inflation was at 3.8 per cent.
Company news: Sonic Healthcare Ltd (ASX:SHL) is expanding its overseas presence, announcing today it has completed three acquisitions of laboratories in Belgium and the US. Sonic says all three purchases are immediately earnings per share accretive and have been funded from existing cash and debt facilities. While Sonic has not disclosed the purchase price, it says the combine price for the three laboratories is expected to equal an enterprise value around six times EBITDA. Shares in Sonic Healthcare gained 1.52 per cent today to close at $12.02.
Transfield Services Ltd (ASX:TSE) says it has successfully raised $98 million through a retail entitlement to partially fund its $575 million acquisition of mining and infrastructure services provider Easternwell. Transfield also today announced it has secured two new defence industry contracts valued at $68 million. Transfield will deliver blast and paint work under a $35 million contract with ASC and will also provide maintenance under a $33 million contract at The Royal Australian Air Force's RAAF Williamtown. Shares in Transfield Services dropped 1.52 per cent to close at $3.25.
Bell Financial Group Ltd (ASX:BFG) has recorded unaudited net before after tax in 2010 of around $21.5 million, down from the $27.3 million unaudited net profit recorded the year before.
The board of The Warehouse Group Ltd (ASX:WHS) has stood by its CEO Ian Morrice, confirming their support despite media speculation that his job is on the line after disappointing trading results.
Spanish building giant ACS has secured regulatory clearance from the European Union to take control of Leighton Holdings Ltd (ASX:LEI) parent, Hochtief.
AMP Ltd’s (ASX:AMP) friendly $13 billion takeover of rival AXA Asia Pacific (ASX:AXA) has been given a boost after an independent expert concluded the deal was fair and reasonable to shareholders.
In the best and worst performers: The best performing sector at close was Consumer Staples, with the index rising 7 points to close at 7,853. The worst performing sector was Materials, the index falling 200 points to close at 14,008. The best performing stock in the S&P/ASX200 was Aristocrat Leisure shares advanced 3.33% to close at $3.10. Shares in Mermaid Marine Australia and Aurora Oil and Gas also gained today. The worst performing stock was Sundance Resources shares lost 8.04% to close at $0.515. Shares in Regis Resources and Linc Energy also closed softer today.
In commodities, gold is trading at $1,364 US an ounce. And light crude is down $0.11 to $91.29 US a barrel.
