Following soft leads the Australian share market opened in the red and traded in negative territory before closing 0.2 per cent lower. The miners tumbled to the worst performing sector as China flagged economic growth of 7.5 per cent this year, down from its long-standing target of 8 per cent.
The S&P/ASX 200 index lost 10 points to finish at 4,263. On the futures market the SPI is currently 11 points lower.
Economic news
Company profits fell unexpectedly in the last three months of 2011. The Australian Bureau of Statistics reports that gross profits in the December quarter fell 6.5 per cent, defying expectations for a rise.
Consumer prices increased moderately this month. TD Securities and the Melbourne Institute’s inflation gauge added 0.1 per cent in February, following a gain of 0.2 per cent the month before.
Australian services sector activity contracted by the biggest amount since mid-2009. The Australian Industry Group and Commonwealth Bank’s Australian Performance of Services Index dropped 5.2 points to 46.7 points in February. The level, under 50, indicates contraction in activity.
Job ads continued to grow in 2012. According to ANZ’s job advertisements series the number of job ads on the internet and major newspapers increased 3.3 per cent in February, after lifting 7.5 per cent the month before.
Company news
Shares in Gloucester Coal Limited (ASX:GCL) rose to one of the day’s best performers amid reports the coal producer’s independent directors are coming close to approving Yanzhou Coal's plans to merge the two companies. Shares in Gloucester Coal closed 3.17 per cent higher at $8.46.
Shares in Western Areas NL(ASX:WSA) fell to today’s worst performer after the nickel miner said it had acquired all of Kagara Limited’s (ASX:KZL) nickel assets for $68 million. Shares in Western Areas closed 4.23 per cent lower at $5.44.
Oil and gas explorer Beach Energy Limited (ASX:BPT) has announced its fourth Egyptian exploration discovery.
Singapore Telecommunications Limited (ASX:SGT) has announced a new organisation structure, geared toward sustaining the telco’s growth, competitiveness and innovation.
Soft drink company Coca-Cola Amatil Limited (ASX:CCL) will gain about $34 million from SABMiller by choosing not go ahead with acquiring Foster’s Australian spirits business.
Pharmaceutical manufacturer Phosphagenics Limited (ASX:POH) has inked a pre-licensing agreement with a Japanese Pharmaceutical Company.
Best and worst performers
The best performing sector was Utilities adding 41 points to close at 4,601. The worst performing sector was Materials, losing 93 points to close at 11,196 points.
The best performing stock in the S&P ASX 200 was Bathurst Resources Limited (ASX:BTU) rising 7.59 per cent to close at $0.85. Shares in FKP Property Group (ASX: FKP) and AWE Limited (ASX:AWE) also closed stronger.
The worst performing stock was Western Areas NL (ASX:WSA), dropping 4.23 per cent to close at $5.44. Shares in Ramelius Resources Limited (ASX: RMS) closed lower, as did Monadelphous Group Limited (ASX:MND), the stock trading ex-dividend today.
Commodities
Gold is trading at $US1,713 an ounce.
Light crude is $0.26 higher at $US106.96 a barrel.
