The Australian share market retreated today after recent gains, following a run of mixed earnings reports. Australia and New Zealand Banking Group (ASX:ANZ) fell to close in the red, despite posting a 27 per cent rise in its first-quarter profit.
The S&P/ASX200 Index eased 2 points to close at 4,937, while on the week it was 56 points higher. On the futures market, the SPI is up 8 points.
Looking to the US and on Wall St, the DOW Jones Industrial Average was up 45 points over the four trading days this week. The S&P 500 Index was up 11 points, NASDAQ was up 22 and the 100 Index was up 18.
Company news: Fortescue Metals Group Ltd (ASX:FMG) has announced a seven-fold jump in its first half-year earnings and declared its first dividend of 3 cents per share. On the back of surging iron ore prices, the miner posted a net profit of $311 million, up from $42 million the same time a year before. Revenue doubled to $2.5 billion. In late news, the full bench of the Federal Court upheld financial regulator ASIC’s decision to disqualify founder and CEO Andrew Forrest as a director following comments made in 2004 about binding contracts with Chinese companies. Unless Mr Forrest appeals the decision he will be removed as a director of the company. Shares in Fortescue rose to $6.88 today before entering into a trading halt.
Macarthur Coal Ltd (ASX:MCC) has downgraded its 2011 financial year production target as a result of heavy rains impacting the Queensland coal producer’s operations. Macarthur Coal says its annual saleable production target is now 4.1 million to 4.3 million tonnes, down from the earlier forecast of 5 million tonnes. CEO Nicole Hollows says excessive wet weather has delayed production through to this month, but anticipates production will return to normal over the coming weeks, subject to unexpected disruptions. Shares in Macarthur Coal dropped 1.28 per cent today to close at $12.36.
Minara Resources Ltd (ASX:MRE) closed 2.86 per cent stronger today, after it boosted full year net profit 21 per cent to $58.9 million. The nickel miner has declared a final distribution of five cents per security, fully franked.
Duet Group Ltd (ASX:DUE) has reported a 51 per cent fall in its first half net profit, slipping to $39.7 million. The energy distributor declared an interim distribution of 10 cents per security.
In the best and worst performers of the day: The best performing sector at close was Consumer Discretionary, with the index adding 20 points to close at 1,555. The worst performing sector at close was Telco Services, the index losing 5 points to close at 1,011. The best performing stock in the S&P/ASX200 was Billabong International, rising 6.37 per cent to close at $8.51. Shares in Austar United Communications and Myer Holdings also lifted today. The worst performing stock was Extract Resources shares fell 4.59 per cent to close at $9.56. Shares in OceanaGold Corporation and Equinox Minerals also ended in the red today.
In commodities, gold is trading at $US1,385 an ounce and is up $30.00 on the week. Light crude is 16 cents down at trading at $US86.20 a barrel. The Australian dollar is trading at $US1.013 cents, and is slightly up on the week.
