Weighed down by weak leads the Australian share market opened in the red and fell throughout the day to end 0.9 per cent down near the session’s low. Equities extended losses after Prime Minister Julia Gillard held onto her position amid a leadership challenge. The local bourse was also weighed down by a number of companies going ex-dividend today, including BHP Billiton Limited (ASX:BHP) and Woodside Petroleum Limited (ASX:WPL), pushing the resources and energy sectors to the worst performers.
The S&P/ASX 200 index dropped 39 points to finish at 4,267. On the futures market the SPI is 23 points down.
Economic news
Online retail is growing, according to a new survey launched today by National Australia Bank Limited (ASX:NAB). The online retail sales index found while online sales account for only 4.9 per cent of retail spending in Australia, they grew 29 per cent to $10.5 billion in the 2011 calendar year.
Company news
Shares in Beach Energy Limited (ASX:BPT) fell to one of today’s worst performers after the oil and gas producer failed to impress with its first half results. Despite exceeding its guidance and rebounding from a loss to a profit of $56 million, Beach’s production dipped 0.7 per cent over the last six months of 2011. The company has also confirmed its full year production guidance. Shares in Beach Energy fell 5.38 per cent today, closing at $1.67.
Shares in Lynas Corporation Limited (ASX:LYC) also took a tumble as investors responded to news of protests in Malaysia against the rare earth developer’s refinery. According to the Australian Associated Press Malaysia’s opposition leader told thousands of protestors yesterday his party will cancel the plant if it secures power in the next polls. Lynas said last week construction of its refinery is on track for first feed to kiln and production in the second quarter. Shares in Lynas Corporation dropped 4.65 per cent today, closing at $1.23.
Surf-wear retailer Billabong International Limited (ASX:BBG) has rejected a $765 million takeover offer from US private equity group TPG Capital.
Outdoor advertising company oOh!media Group Limited’s (ASX:OOH) shareholders have today given their overwhelming support for a $170 million takeover bid from its shareholder, CHAMP Private Equity.
Oil refiner Caltex Australia Limited (ASX:CTX) has swung from a profit to a half year loss of $714 million, weighed down by a write-down of its refinery assets.
Roc Oil Company Limited (ASX:ROC) has rebounded to a full year profit, posting a net income after tax of $US27.7 million on the back of cost control and ongoing strength in the price of oil.
Best and worst performers
Most sectors closed lower: The best performing sector was Utilities adding 13 points to close at 4,569. The worst performing sector was Materials, losing 178 points to close at 11,363 points.
The best performing stock in the S&PASX 200 was Linc Energy Limited (ASX:LNC), rising 7.47 per cent to close at $1.51. Shares in OneSteel Limited (ASX:OST) and Austar United Communications Limited (ASX:AUN) also added value.
The worst performing stock was White Energy Company Limited (ASX:WEC), dropping 6.82 per cent to close at $0.41. Shares in Aquarius Platinum Limited (ASX:AQP) and Beach Energy Limited (ASX:BPT) also lost value.
Commodities
Gold is trading at $US1,775 an ounce.
Light crude is $0.47 lower at $US109.30 a barrel.
