Hopes over Europe’s spiralling debt situation saw the Australian share market open higher but close lower as concern prevailed. After bouncing more than 1 per cent shares dipped into the red by early afternoon and finished more than 1 per cent down. Strength in the financials failed to offset steep falls in resources, on fears that a global recession will cut into demand for commodities.
The S&P/ASX200 Index today shed 39 points to close at 3,864. On the futures market the SPI is down 50 points.
Company news
Shares in Rio Tinto Limited (ASX:RIO) pulled the mining sector lower today as reports emerged that Rio is planning to spin-off some of its aluminum assets in Australia in an effort to sidestep the impact of the carbon tax. The global miner’s Mongolian operations were also in the headlines with its partner, Ivanhoe Mines (NYSE:IVN), accusing Rio of releasing ''unauthorised and incomplete information” concerning their Oyu Tolgoi copper and gold mine. Shares in Rio Tinto fell 3.91 per cent today, closing at $60.20.
Woolworths Limited (ASX:WOW) released its annual report today revealing that its outgoing CEO Michael Luscombe last year took home $5.73 million, down from more than $8 million the year before. All executives took a pay cut in the same year Woolies reported the lowest growth in 12 years. Shares in Woolworths rose 0.81 per cent today, closing at $24.77.
Nathan Tinkler’s Aston Resources Limited (ASX:AZT) today posted a maiden net profit of $243 million, boosted by the sale of a 15 per cent stake in its Maules Creek Project. The coking-coal developer is targeting to secure planning approvals for Maules by early 2012 and be producing by mid-2013.
Macquarie Group Limited’s (ASX:MQG) has won a $95 million dispute with the Australian Tax Office. The Federal Court dismissed the ATO’s claims that the investment bank used a tax avoidance scheme in relation to the sale of a stake in nickel producer Minara Resources Limited (ASX:MRE).
Shares in takeover target Bow Energy Limited (ASX:BOW) firmed today after the gas explorer said it would back Arrow Energy’s improved $524 million bid for the company. Shareholder will vote on the offer in December.
Shares in Myer Holdings (ASX:MYR) slumped to an all time low under $2.00 today, closing 6.37 per cent down at $1.985. The department store retailer listed at $4.10 per share at the end of 2009. Myer is forecasting its net profit to fall 10 per cent in the 2012 financial year.
Best and worst performers
Most sectors closed lower: The best performing sector was Health Care, rising 108 points to close at 7,535. The worst performing sector was Energy, dropping 470 points to close at 11,605.
The best performing stock in the S&P/ASX200 was Gunns, shares advanced 9.68 per cent to close at $0.17. Shares in James Hardie Industries and Virgin Blue Holdings also closed higher. The worst performing stock was Murchison Metals, falling 19.51 per cent to close at $0.33. Shares in Intrepid Mines and Lynas Corporation also fell heavily today.
Commodities
The price of gold dropped to $US1,575 an ounce.
Light crude is down $2.07 cents at $US77.78 a barrel.
