The Australian share market fell throughout the day to end more than 1 per cent down. Concerns over US growth and Europe’s debt situation continued to weigh on sentiment. Most sectors ended in negative territory with the telco’s the only sector to buck the trend.
The S&P/ASX200 Index dropped 46 points to close at 4,462. On the futures market, the SPI is down 56 points.
Company news
Engineering company UGL Ltd (ASX:UGL) has secured $400 million in new resource contracts. The contracts are for work in the oil, gas, coal and alumina sectors and have been awarded from companies such as BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd’s (ASX:RIO) Coal & Allied and Wesfarmers (ASX:WES). Shares in UGL fell 2.12 per cent today, closing at $13.87.
Qantas Airways Ltd (ASX:QAN) engineers will commence industrial action against Australia’s largest airline in one week. The association representing the engineers says its campaign will start with a two-hour stop work meeting in Melbourne next Monday. Qantas has labelled the industrial action as unnecessary and says it is extremely disappointed by the latest developments. Shares in Qantas added 1.91 per cent today, closing at $1.87.
Shares in Biota Holdings Ltd (ASX:BTA) plunged more than 10 per cent today after reporting weak preliminary trial results for its flu drug, Inavir.
Analysts at Merrill Lynch have told The Australian that Rio Tinto and BHP are well funded for mergers and acquisitions, underpinned by expectations the global miners could this year generate around $20 billion in free cash flow.
Reports have emerged that BHP Billiton Ltd (ASX:BHP) could complete its $9.5 billion share buyback program as early as this week.
The Federal Court today found that ASIC has won its case against the directors of Centro Properties Group (ASX:CNP), who failed to notice billions of dollars in liabilities in the property group's 2006-07 accounts.
Sectors
In the best and worst performers, most closed in the red: The only sector to finish in positive territory was Telco Services, adding 2 points to close at 992. The worst performing sector was Health Care, losing 181 points to close at 8,068. The best performing stock in the S&P/ASX200 was Gindalbie Metals shares rose 2.96 per cent to close at $0.87. Shares in Qantas and Caltex also closed in higher today. The worst performing stock was Cudeco, falling 6.98 per cent to close at $2.93. Shares in Intrepid Mines and White Energy Company also closed lower today.
Commodities
Gold is trading at $US1,500 an ounce. Light crude is down $0.67 cents at $US90.49 a barrel.
