The Australian share market opened and closed in negative territory, extending losses throughout the day to end 1 per cent down. Despite an approved austerity plan in Greece equities dragged after Moody’s Investors Service downgraded the credit ratings of six European countries, including Italy and Spain, and placed the UK, France and Austria on credit watch negative. Most sectors ended in the red weighed down by mining and energy stocks.
The S&P/ASX 200 index shed 42 points to finish at 4,243. On the futures market the SPI is currently 38 points lower.
Economic news
Business conditions and confidence picked up at the beginning of this year, following two consecutive rate cuts at the end of last year. According to National Australia Bank Limited’s (ASX:NAB) monthly business survey, business conditions rose from a read of zero to 2 index points in January and business confidence rose 1 point to a read of 4 index points.
Company news
Shares in BHP Billiton Limited (ASX:BHP) and Rio Tinto Limited (ASX:RIO) both lost ground today, despite unveiling plans to inject $US4 billion into their joint venture Escondida mine in Chile. The investment came on the same day majority owner BHP announced a 25 per cent increase in ore reserves at the world's largest copper mine. Shares in Rio closed 1.63 per cent lower at $69.28. Shares in BHP closed 1.34 per cent lower at $36.17.
Shares in WestSide Corporation Limited (ASX:WCL) closed almost 50 per cent higher today, one day after confirming it has received a takeover bid. The coal-seam gas explorer said yesterday, about half an hour before the market closed, it has been offered 65 cents per share from an undisclosed party, valuing the company at about $165 million. Shares in WestSide Corporation gained 48.53 per cent today, closing at $0.505.
Paladin Energy Limited (ASX:PDN) posted a first half net loss of $US120 million, widening from the year before but coming in less than expected in the same period the uranium miner delivered record production results.
Shares in Western Areas NL (ASX:WSA) lost ground after the miner said its first half net profit fell 64 per cent to $24 million, weighed down by a 25 per cent pull-back in the average nickel price and a strong Australian dollar.
Today’s worst performer was GWA International Limited (ASX:GWA), dropping after the household-products manufacturer said its first half net profit fell 60 per cent, or $13.3 million, due to restructuring expenses and discontinued operations.
One of today’s best performers was Fortescue Metals Group Limited (ASX:FMG), shares continued to rise amid speculation the iron ore miner could be a takeover target and ahead of its first half results due tomorrow.
Best and worst performers
Most sectors closed in the red: The only sector to end in positive territory was Consumer Staples adding 17 points to close at 7,350. The worst performing sector was Materials, falling 160 points to close at 11,468 points.
The best performing stock in the S&PASX 200, was Fleetwood Corporation Limited (ASX:FWD), rising 2.42 per cent to close at $12.69. Shares in Telecom Corporation of New Zealand (ASX:TEL) and Campbell Brothers Limited (ASX:CPB) also added value.
The worst performing stock was GWA International Limited (ASX:GWA), dropping 6.85 per cent to close at $2.31. Shares in GUD Holdings Limited (ASX:GUD) also eased and Lynas Corporation Limited (ASX:LYC) closed lower after releasing an investor presentation.
IPOs
Pura Vida Energy NL (ASX:PVD) started trading today. The emerging African oil explorer listed at $0.20, started trading at $0.21 and closed more than 19 per cent higher at $0.25.
Commodities
Gold is trading at $US1,717 an ounce.
Light crude is $0.36 lower at $US100.55 a barrel.
