The Australian share market fell more than 1.6 per cent today, despite positive offshore leads from the weekend. All sectors were in the red, with energy and real estate investment trusts proving to be the heaviest sectors to pull the market down.
The S&P/ASX200 Index today fell 68 points to close at 4,082. On the futures market, the SPI is currently down 61 points.
Economic news
Merchandise imports rose 4 per cent last month. The Bureau of Statistics seasonally adjusted merchandise imports figures increased by $733 million to $20.17 billion in August. The lift was led by an 11 per cent rise in fuel imports and a 4 per cent rise in consumption goods imports.
Company news
Macarthur Coal Limited (ASX:MCC) has received an extended bid from Peabody Energy and ArcelorMittal. It is the second time the joint bid has been extended, this time by 17 days. Macarthur's board recommended the joint $16-a-share offer in a statement on September 5, valuing the company at $4.83 billion. Shares in Macarthur Coal Limited (ASX:MCC) closed 0.31 per cent lower at $15.95.
Minara Resources Limited (ASX:MRE) has recommended an offer from Glencore International of 87 cents. The offer values Minara at $1.02 billion. Glencore already controls 73.4 per cent of Minara shares and 40 per cent of its key asset, the Murrin Murrin nickel mine. Shares in Minara Resources Limited (ASX:MRE) are down 0.57 per cent at 87 cents.
Rio Tinto Limited’s (ASX:RIO) head of iron ore operations Sam Walsh said world iron ore prices remain "damn good" despite recent modest declines. He told Dow Jones that speculation about a rapid build-up in supply to the world market is overstated, and demand is still strong for Rio’s products.
Qantas Airways Limited (ASX:QAN) workers will go on strike tomorrow, forcing the airline to warn more than 6,100 passengers that they’ll be affected. The nationwide strike by airport baggage handlers and ground staff will last for four hours during the morning peak. It may cause delays of up to 48 hours after the strike. It’s an ongoing dispute between the airline and unions over pay and conditions for workers.
Premier Investments Limited (ASX:PMV) shares were up 1.5 per cent this afternoon despite the company posting a net profit almost half of what it reported last year. In the 2011 financial year the retailer booked a net profit of $40.5 million. Last year it reported a net profit of $79.6 million.
And Gunns Limited (ASX:GNS) has finally come out of a month and a half long trading halt. Shares jumped 26.83 per cent in morning trade to 26 cents but closed flat. The forestry company also issued an update to the Australian Securities Exchange detailing the Tasmanian Forests Agreement, pulp mill project, its financing and business restructure.
Best and worst performers
Telcos were the best performing sector, but closed almost flat at 1,050. The worst performing sector was energy, falling 341 to close at 12,744.
The best performing stock in the S&P/ASX200, was Cochlear gaining 5.66 per cent to close at $54.10. Shares in St Barbara and Perseus also closed higher.
The worst performing stock was Billabong, shedding 7.62 per cent to close at $3.03. Shares in Karoon and Aquila also fell today.
Commodities
Gold is trading at $US1,822 an ounce and Light crude is down $1.32 at $US86.64 a barrel.
