The Aussie sharemarket dropped for the fourth day in a row, down almost two per cent today, after poor manufacturing data was released from China and a drop in iron ore prices.
Today, the S&P/ASX 200 Index today fell 82 points to finish at 4,051. On the futures market, the SPI is 94 points lower.
Economic
Construction figures rose to their highest level in at least 25 years, suggesting the mining boom’s picking up steam. The Bureau of Statistics says construction work done in Australia rose 12.5 per cent in the September quarter.
Company news
NRW Holdings Limited (ASX:NWH) shares closed the day 12.55 per cent higher, after the resources contractor said it may well double its first half net profit. It says profit for the six months to the end of the year will be in the range of $41 million to $43 million, up about 100 per cent, compared to the prior corresponding period. Revenue is anticipated to be between $580 million and $610 million, an increase of about 60 per cent on the first half of 2010/11.
Shares in NRW Holdings Limited (ASX:NWH) closed today at $2.78.
Meanwhile IOOF Holdings Limited (ASX:IFL) shares dropped 10.35 per cent at close, after it said it’s expecting its first half profit to drop because of falls on global stock markets. Underlying profit after tax to the end of the year’s expected to be between $46 and $51 million, a drop of up to 16 per cent from the year before. IOOF Holdings Limited (ASX:IFL) shares closed at $5.37.
Rio Tinto Limited’s (ASX:RIO) received clearance from the Canadian Competition Bureau for its offer to acquire all common share of Hathor Exploration Limited for C$4.70 in cash per common share. Rio Tinto’s recommended offer values Hathor at approximately C$654 million on a fully-diluted basis.
ASIC’s extended Origin Energy Limited’s (ASX:ORI) exposure period for the prospectus of its proposed notes issue by seven days, to give it time to further consider the terms of the prospectus, including aspects relating to the mandatory deferral of interest payments.
Virgin Blue Holdings Limited (ASX:VBA) says despite higher fuel costs, its underlying profit before tax in the first three months of 2011/12 was higher than the corresponding period the year before. The airline says it’s now laid the foundations for future growth and expects to continue to improve.
And Macmahon Holdings Limited (ASX:MAH) were up 1.75 per cent at close after it said its subsidiary company in Nigeria was awarded a seven year contract for quarrying operations. It will be the company’s second contract in Nigeria and the fifth limestone quarry contract that Macmahon operates across Malaysia, Indonesia and Nigeria.
Best and worst performers
Today all sectors were in the red, industrials had the smallest losses, it was down 28 points to 3,337. The worst performing sector was materials, shedding 315 points to close at 10,799.
The best performing stock in the S&P/ASX200 was NW Holdings as previously mentioned, rising 12.55 per cent, followed by Cudeco and Ausdrill.
The worst performing stock was Gryphon, dropping 11.67 per cent to $1.32.5, followed by Gunns and IOOF Holdings.
Commodities
The price of gold is $US1,708 an ounce and Light crude is down $1.15 at $US96.86 a barrel.
