The Australian sharemarket has closed flat, despite falling overseas markets fuelled by fears of the European debt crisis spreading to Germany.
The S&P/ASX 200 Index ended 7 points lower at 4,044. On the futures market, the SPI is currently 15 points weaker.
Company news
Murchison Metals Limited (ASX:MMX) has struck a $325 million deal with joint-venture partner Mitsubishi Corp over the sale of its stake in the Oakajee port and rail project and Crosslands iron ore project in Western Australia. Murchison was forced to admit it would not be able to fund its equity share of the projects. Now, according to Reuters, South Korean steel giant POSCO, a substantial Murchison shareholder, has backed Mitsubishi’s move to buy Murchison’s stake in the projects. Murchison shareholders will vote on the sale in February, unless a superior proposal is put forward. Murchison shares soared 52.73 per cent, closing at $0.42.
David Jones Limited (ASX:DJS) has reaffirmed its guidance for a 15 to 20 per cent fall in first half net profit. The retailer posted its fifth consecutive quarter of declining sales. Sales for the quarter were 11 per cent lower on a like-for-like basis. The most marked decline was at stores located in more affluent areas. There were some positive signs, with improvement in trading during October and November and sales of Christmas items up on last year. David Jones shares dropped 5.39 per cent today, closing at $2.81.
Woolworths Limited (ASX:WOW) says trading will remain subdued through to the next financial year. The chief executive, Grant O’Brien says the past year has been the toughest he’s ever experienced in twenty years in retail.
Westpac Banking Corporation (ASX:WBC) appoints Brian Hartzer, a former Australia and New Zealand Banking Group (ASX:ANZ) executive to head the bank’s new Australian Financial Services division.
Gunns Limited (ASX:GNS) expects another difficult year ahead, with both the domestic housing market and international woodchip markets to remain very competitive.
And BlueScope Steel Limited (ASX:BSL) shares have been dumped in high volumes when it resumed trading this afternoon, investors not taking kindly to the surprise $600 million share issue.
Best and worst performers
The best performing sector was Real Estate Investment Trusts, lifting 15 points to close at 782. The worst performing sector was Consumer Discretionary, retreating 9 points to close at 1,201 points.
The best performing stock in the S&P/ASX 200 was Murchison Metals, as mentioned earlier. Shares in Kagara and Gunns also finished stronger.
The worst performing stock was BlueScope Steel, dropping 24.52 per cent to close at $0.39. Shares in Billabong International and Linc Energy also lost value.
Commodities
The price of gold is $US1,693 an ounce and Light crude is up $0.33 at $US96.50 a barrel.
