The Australian share market closed one per cent lower, dragged down by resources, with the dumping of Fortescue shares taking its toll. Local stocks also fell on economic news out of China.
The S&P/ASX200 Index lost 51 points to close at 4,784. On the futures market, the SPI is 63 points lower.
Economic news: China’s GDP jumped nearly 10 per cent in the fourth quarter and inflation declined in December. China’s Consumer Price Index rose by 4.6 per cent, down from 5.1 per cent in November, which was a more than two-year high.
Company news: ING Real Estate Entertainment Fund’s (ASX:IEF) largest tenant Icon Hospitality Group has fallen into receivership. Icon owes $60 million to the Commonwealth Bank of Australia. The Group’s hotels include the Commodore Hotel in North Sydney, Dolphin Hotel in Surry Hills and the Woolwich Pier Hotel. Icon also holds a lease over the Bourbon Hotel in Kings Cross. The receivers have stepped in. ING Real Estate Entertainment Fund has already indicated plans to run the pubs itself. Shares in ING Real Estate Entertainment Fund closed flat at 10 cents.
Qantas Airways Ltd (ASX:QAN) has indicated ticket prices might need to be raised or fuel surcharges increased on international routes, as oil prices increase. Chief Executive Alan Joyce said a levy may apply to future bookings if other carriers also increase their prices. Qantas has limited power to increase domestic airfares due to intense competition from Tiger Airways and Virgin Blue. Shares in Qantas are steady at $2.47.
Arafura Resources Ltd (ASX:ARU) is in talks to sell rare earths to Japan, according to Agence France-Presse. Japan is setting up efforts to diversify its supply away from China.
ANZ Banking Group (ASX:ANZ) has appointed the Royal Bank of Scotland’s Charles Li as Chief Executive of its Chinese subsidiary. Li will replace Christine Ip who quit and moved to Singapore late last year.
BHP Billiton Ltd (ASX:BHP) says coal production fell 30 per cent because of the Queensland floods. The Global miner also reported record iron ore production and shipments.
Singapore investment house Temasek has dumped its full stake in Fortescue Metals Group Ltd (ASX:FMG) in a deal worth up to $880 million.
In the best and worst performers: The best performing sector at close was Consumer Staples, with the index rising 11 points to close at 7,981. The worst performing sector was Materials, the index falling 290 points to close at 13,993. The best performing stock in the S&P/ASX200 was Virgin Blue Holdings as shares rose 10.00 per cent at $0.44. Shares in GrainCorp and Hills Holdings were also up. The worst performing stock was Fortescue Metals Group as shares lost 7.79 per cent to close at $6.63. Shares in Energy World Corporation and Computershare also closed softer today.
In commodities, gold is trading at $US1,369 an ounce and light crude is down $0.11 cents to $US90.75 a barrel.
