The Australian sharemarket finished the day at its lowest close in three months. Stocks have been dragged down by the miners and data showing China swung to a shock trade deficit last month, it’s largest in seven years. The Australian unemployment rate remained steady at 5 per cent.
The S&P/ASX200 Index closed 68 points lower today to 4,700. On the futures market, the SPI is down 85 points.
Company news: Ten Network Holdings Ltd (ASX:TEN) and the company’s newly appointed chief James Warburton are facing legal action from rival Seven Network. According to Ten, Seven alleges that Mr Warburton’s defection is in opposition to existing employment and post-employment constraints. Ten appointed Mr Warburton as its new chief executive on March 2nd. The move co-incided with James Packer’s departure. Ten Network shares fell 2.04 per cent to close at $1.20.
Gunns Ltd (ASX:GNS) has been given the go-ahead by federal Environment Minister Tony Burke. The company has been granted the final three environmental permits needed for its proposed $2.3 billion Tasmanian pulp mill. The decision had been delayed by one week. Gunns has been trying to get this project approved for more than seven years. The pulp mill will be fed by plantation timber. Gunns shares soared 5.88 per cent to close at $0.63.
Wesfarmers Ltd (ASX:WES) long-term ratings have lifted thanks to an improving financial risk profile and the strength of its Coles business. Standard and Poor’s has raised Wesfarmers rating to A- from BBB+.
Lend Lease Group (ASX:LLC) is free to start work on the Barangaroo development car park. The Land and Environment Court dismissed the case brought by Australians for Sustainable Development, but has ordered the government to pay all the costs incurred by the group.
Rio Tinto Ltd (ASX:RIO) has sweetened its bid for Riversdale Mining Ltd (ASX:RIV) in an effort to entice shareholders to take up the offer. The global mining giant has lifted the bid from $16 to $16.50 per share.
Woodside Petroleum Ltd’s (ASX:WPL) $14 billion Sunrise development proposal is already deadlocked according to The Australian. The report says East Timor has threatened to cancel its historic treaty with Australia unless Woodside agrees to local processing.
In the best and worst performers: The best performing sector at close was Health Care with the index rising 3 points to close at 8,643. The worst performing sector was Materials easing 396 points to close at 13,561. The best performing stock in the S&P/ ASX200 was Gunns Ltd, shares gained 5.88 per cent to close at $0.63. Shares in Riversdale Mining and Charter Hall Group also closed stronger today. The worst performing stock was Bow Energy Ltd, shares plunged 8.02 per cent to close at $0.975. Shares in Western Areas and Aurora Oil & Gas Ltd also dropped today.
In commodities, gold is trading at $US1,430 an ounce. Light crude gained 40 cents at $US104.78 a barrel.
