The Australian share market only managed modest gains today as investors remain cautious about on-going tensions in the Middle East. A rising oil price helped the energy producers, and the banks also lifted. Weakness across the diversified financials and insurers though weighed on the market.
The S&P/ASX200 Index lifted 9 points to close at 4,652. On the futures market, the SPI is down 7 points.
Turning to company news: And Rio Tinto’s (ASX: RIO) chief has been spruiking copper at an Investment Conference in Hong Kong today. Tom Albanese says he expects global copper consumption over the next few decades to exceed total historical consumption to date. He was also reported as saying the company would focus on organic growth, and M&As would be limited to smaller deals. The comments come just days after Rio said iron ore supplies could be stretched even further in the wake of the tsunami disaster to hit Japan. Shares in Rio Tinto rose 0.16 per cent to close at $80.68.
And many of Rio’s sentiments have been echoed by Fortescue Metals (ASX:FMG). The iron ore producer says it expects iron ore prices to remain high until at least 2012. After that the miner expects new suppliers to enter the market. Fortescue founder Andrew Forrest says the high cost of China’s domestic iron ore supply will support the long term price. Shares in Fortescue shed 0.17 per cent to close at $5.87.
Also making news: According to analysts, James Packer and Kerry Stokes are expected to privatise Consolidated Media in the “not too distant future”. It comes amid a recent wave of domestic media consolidation.
And Crane Group chief Greg Sedgwick has resigned after Fletcher Building announced it has moved to a 71 per cent stake.
Taking a look at other news: David Jones Ltd (ASX:DJS) has posted a 5.2 per cent lift in first half earnings, but cautioned that volatile markets and consumer sentiment could see full year net profit come in at the lower end of its guidance.
And Virgin Blue Holdings Ltd (ASX:VBA) has warned that its 2011 full year profit is expected to fall to a net loss of between 30 million dollars to 80 million dollars. The forecast is well under the $21.3 million dollars net profit Virgin booked in the 2010 financial year.
To the best and worst performing sectors now: The best performing sector today was the healthcare sector gaining 94 points to close at 8,478. The worst performing sector was Utilities falling 30 points to close at 4,085. The best performing stock in the S&P/ASX200 was Resolute...shares rising 5.5 per cent to close at $1.15. Shares in AWE and Asciano also closed in the black. The worst performing stock was Virgin Blue, shedding 6.06 per cent to close at 31 cents. Shares in Murchison Metals and Independence Group also closed weaker today.
In commodities, gold is trading at $US1,427 an ounce and Light crude is 19 cents weaker at $US104.78 a barrel.
