Following a lacklustre start, the Australian share market slipped into the red and closed 0.4 per cent lower. With holiday weekends in both the US and UK markets trade was light, weighed down by losses in the banking sector.
The S&P/ASX200 Index dropped 16 points to close at 4,668. On the futures market, the SPI is down 29 points.
Economic news: Following a sluggish start to the year, The Housing Industry Association has reported that new home sales lifted a mere 0.2 per cent to 11,000 in April. New South Wales and Victoria posted increases, while Queensland, South Australia and Western Australia all recorded falls in detached new house sales.
Company news: Responding to media speculation, Sundance Resources Ltd (ASX:SDL) has denied that it is currently in discussions regarding a full takeover. Rather, the iron ore explorer says it is continuing ongoing discussions with several prospective strategic partners with respect to developing its Mbalam project in West Africa.The statement came after a report that alleged Sundance’s majority shareholder, China’s Hanlong Mining, is considering a full takeover. Shares in Sundance Resources advanced 10.96 per cent today, ending at $0.405.
Shares in Platinum Australia Ltd (ASX:PLA) tumbled today after the platinum producer informed the market that a bus transporting its workers from the company’s Smokey Hills mine in South Africa was stopped, turned on its side and set on fire, resulting in a fatality and eight injuries. The attack is believed to be staged from former employees of the mine who had been terminated earlier this year after taking illegal industrial action. Platinum Australia suspended operations at the mine at the end of last week but operations were due to recommence today. Shares in Platinum Australia plunged 9.2 per cent to close at $0.395.
Shares in Cedar Woods Properties Ltd (ASX:CWP) rose today after the property development company announced it has signed a 20-year lease agreement with supermarket giant Woolworths (ASX:WOW) for three anchor stores at Williams Landing in Melbourne’s west.
Shares in Charter Hall Office (ASX:CQO) lifted after the property investor confirmed it has received 28 expressions of interest for the sale of its United States portfolio. Binding purchase and sale agreements are expected to be signed within the September quarter 2011.
Suncorp Group Ltd’s (ASX:SUN) CEO, Patrick Snowball, has confirmed that the company’s general insurance arm is targeting at least 3 per cent growth in underlying margin by the end of next year.
Mesoblast Ltd (ASX:MSB) has emerged as the next in series of companies to publicly admit the strong Aussie dollar may force the stem-cell specialist to set up manufacturing operations overseas.
In the best and worst performers: The best performing sector was Real Estate Investment Trusts, adding 3 points to close at 864. The worst performing sector was Health Care, losing 73 points to close at 8,617. The best performing stock in the S&P/ASX200 was Sundance Resources shares rose 10.96 per cent to close at $0.405. Shares in Intrepid Mines and Resolute Mining also closed in higher today. The worst performing stock was Hastie Group, falling 5.77 per cent to close at $0.245. Shares in Infigen Energy and Elders also closed lower today.
Commodities: Gold is trading at $US1,535 an ounce. Light crude is down $0.28 cents at $US100.31 a barrel.
