The market fell 1.9% this afternoon with weakness in all sectors dragging stocks lower. Fears of a political breakdown in Greece continue to take their toll closer to home.
The S&P/ASX200 Index closed 88 points lower at 4,479. On the futures market, the SPI is down 52 points.
Economic news
Sales of new motor vehicles declined 7.6 per cent in May.
Industrial conditions deteriorated in the second quarter. The Westpac and the Australian Chamber of Commerce and Industry survey's main composite index slid 10.2 points in the second quarter to 48.9. The index is now near its low of September 2010.
And consumers expect inflation to rise 3.3 per cent over the next year according to the Melbourne Institute survey of inflationary expectations for June.
Company news
Linc Energy Ltd (ASX:LNC) today announced its wholly owned subsidiary has acquired a controlling interest in an oil field located in Alaska’s National Petroleum Reserve. The $US 50 million purchase will be funded through the company’s cash reserves. The purchase delivers 201 million barrels of net probable and possible or 3P reserves. Shares in Linc Energy fell 3.23 per cent today, closing at $3.00.
Mirvac Group (ASX:MGR) has commenced a strategic review of options to maximise the value of its hotel management business and associated investments. The review follows poor results, the company recording a loss of $12.7 million in the six months to December 31, 2010. There is speculation the group will offload its hotel assets. Mirvac Group’s brands include Citigate, the Marriott, Sebel and Quay West. Shares in Mirvac Group dropped 0.77 per cent today, closing at $1.29.
BC Iron Ltd (ASX:BCI) says it is meeting iron ore production targets, forecasting shipment of 2.3 million tonnes by the end of the year.
Telecom Corp of New Zealand (ASX:TEL) has appointed David Yuile from within the telco as the new chief executive of AAPT Australia, effective July 1.
Telstra Corporation Ltd (ASX:TLS) has been dominating the headlines today with speculation focusing on its pending deal with NBN Co. The telco revealed it will invest $800 million over the next five years into its cloud computing services.
And the Commonwealth Bank of Australia (ASX:CBA) has today strongly rejected media speculation that it was considering a possible $7 billion buyout of Insurance Australia Group Ltd (ASX:IAG) last year.
Sectors
The sector with the smallest losses was Telco Services falling 4 points to close at 1,040. The worst performing sector was Industrials, losing 83 points to close at 3,480.
Stocks
The best performing stock in the S&P/ASX200 was Sigma Pharmaceuticals Ltd. Shares rose 2.15 per cent to close at $0.475. Shares in Roc Oil Company Ltd and Spark Infrastructure Group also closed higher today.
The worst performing stock was PaperlinX Ltd falling 10.00 per cent to close at $0.135. Shares in Murchison Metals Ltd and Aquarius Platinum Ltd also closed lower today.
Commodities
Gold is trading at $US1,526 an ounce and Light crude is up $0.22 at $US95.03 a barrel.
