The Australian share market fell half a per cent extending losses throughout morning trade, but gaining some ground by mid-afternoon. The retailers led the downward charge.
The S&P/ASX200 Index fell 24 points to close at 4,491. On the futures market, the SPI is down 21 points.
Economic news
The Housing Industry Association - RP Data Residential Land Report for the March quarter found the volume of land sales fell to a record low in early 2011. Sales fell 6 per cent over the March quarter and were 43 per cent lower when compared to the March 2010 quarter.
Company news
News Corporation (ASX:NWS) shares gained almost 6 per cent at the high point of the day’s trade after Rupert Murdoch dropped his bid for BSkyB. The announcement came just before Britain’s parliament was to begin debating a government backed motion calling on Mr Murdoch to halt his attempt to acquire the 61 per cent of the broadcaster his company did not yet own. News Corp shares were up 3.12 per cent at the end of the day, to close at $15.20.
Rio Tinto Ltd (ASX:RIO) has released its second quarter operations review. The chief executive Tom Albanese says operations largely recovered from the severe weather impacts earlier this year but some port and rail constraints remained. The Pilbara mines recovered from a weak first quarter, producing 59 million tonnes of iron ore, that’s just 3 per cent shy of the record fourth quarter of 2010. Shares in Rio Tinto closed flat at $80.95.
Austal Ltd (ASX:ASB) has entered into a contract to design and construct three purpose built vessels for Turbine Transfers in the United Kingdom. It is the first contract for the company’s windfarm vessel design series.
Coal explorer Bandanna Energy Ltd (ASX:BND) has responded to media speculation regarding transactions as part of its strategic review. It has asked potential bidders to provide binding offers for its selected project assets and corporate based transactions.
Shares in David Jones Ltd (ASX:DJS) took a tumble after revealing a shock profit downgrade late yesterday. The retailer now expects total sales to plummet 11 per cent in the fourth quarter of 2011. The chief executive has described the slump in sales as the worst on record for the retailer.
And shares in rival department store Myer Holdings Ltd (ASX:MYR) slumped to an all time low despite reconfirming full year earnings guidance.
Best and worst performers
The best performing sector today was Materials, rising 45 points to close at 13,502. The worst performing sector was Consumer Discretionary, losing 29 points to close at 1,295.
The best performing stock in the S&P/ASX200 today was Sundance Resources Ltd, shares rising 8.33 per cent to close at $0.39. Shares in Regis Resources Ltd and Intrepid Mines Ltd also closed in positive territory today.
The worst performing stock was David Jones Ltd shedding 18.16 per cent to close at $3.20. Shares in Myer Holdings Ltd and JB Hi-Fi Ltd also closed weaker today.
Commodities
Gold is trading at $US1,585 an ounce and Light crude is 28 cents lower at $US97.77 a barrel.
