The market has continued its downward slide ending the day 0.7 per cent lower, dragged down by the telcos and flirting with the 4500 mark.
The S&P/ASX200 Index closed 32 points lower at 4,501. On the futures market, the SPI is down 45 points.
Economic news
Chinese manufacturing activity slipped to an 11-month low, narrowly avoiding a contraction. The HSBC “flash” Purchasing Managers Index fell to 50.1 in June.
Company news
Qantas Airways Ltd’s (ASX:QAN) creditworthiness is under pressure, with ratings agency Standard & Poor’s warning that external pressures are building. The agency said its ratings on Qantas were not immediately affected by the airline’s performance update. Yesterday Qantas revealed it expects to deliver an underlying profit before tax of between $500 million to $550 million in the 2011 financial year. Shares in Qantas fell 1.64 per cent today, closing at $1.80.
Murchison Metals Ltd (ASX:MMX) has been placed in a trading halt as a result of China’s Sinosteel shutting down work on its $2 billion Weld Range iron ore mining project in Western Australia. Murchison is assessing the implications for the Oakajee port and rail project of which it owns a 50 per cent stake. Murchison is conducting a feasibility study, due by the end of this month. It’s likely that the investment will not be viable without Sinosteel. Shares in Murchison Metals last traded at $0.765.
Arafura Resources Ltd’s (ASX:ARU) plans to start production at the Nolans rare earth project near Alice Springs by late 2012 today seem unachievable after a feasibility study has been pushed out by nine-to-twelve months.
Crown Ltd (ASX:CWN) says it has no intention of increasing its interest in Tabcorp Holdings Ltd (ASX:TAH) or Echo Entertainment Group Ltd (ASX:EGP). The casino operator made the statement in response to a media report.
After two years of negotiations Telstra Corporation Ltd (ASX:TLS) has announced that it has signed an $11 billion deal with NBN Co and the Federal Government that will see the roll-out of the National Broadband Network.
Singapore Telecommunications Ltd’s (ASX:SGT) Australian business Optus has struck an $800 million deal that will see the telco migrate its customers to the National Broadband Network.
Sectors
The best performing sector was Real Estate Investment Trusts, adding 4 points to close at 852. The worst performing sector was Telco Services, losing 21 points to close at 1,017.
Stocks
The best performing stock in the S&P/ASX200 was Paladin Energy Ltd shares rose 10.37 per cent to close at $2.66. Shares in Telecom Corp of New Zealand and Perseus Mining Ltd also closed higher today.
The worst performing stock was Medusa Mining Ltd falling 8.32 per cent to close at $6.61. Shares in Gindalbie Metals Ltd and Murchison Metals Ltd also closed lower today.
Commodities
Gold is trading at $US1,546 an ounce and Light crude is down $1.30 at $US94.11 a barrel.
