Pushing aside a positive finish on Wall Street the Australian share market opened and traded in the red today, closing 0.4 down but off session lows. Volumes were light as investors absorbed the impact of the Federal Government passing its Minerals Resource Rent Tax (MRRT). The tax will apply to all new and existing iron ore and coal projects in Australia, and will be applied at a rate of 30 per cent on the taxable profit of a project from the July 1, 2012.
The S&P/ASX 200 index lost 16 points to finish at 4,275. On the futures market the SPI is currently 32 points lower.
Company news
BHP Billiton Limited (ASX:BHP) says though Chinese demand for iron ore is flattening, it has no plans to pull back from its $US10 billion Pilbara expansion. Fellow miner Rio Tinto Limited (ASX:RIO) offered a more bullish outlook for the steel making commodity at the Global Iron Ore and Steel Forecast conference in Perth. Fortescue Metals Group Limited (ASX:FMG) CEO Nev Power last week forecast iron ore prices will trade between $US120 and $US150 in the short term. Shares in BHP Billiton closed 0.11 per cent lower at $35.31.
Transurban Group’s (ASX:TCL) largest 12.5 per cent shareholder, investment group CP2, has offloaded a 7.86 per cent stake in the infrastructure owner for about $631 million. The shares are understood to have been sold to institutional investors for $5.51 per share, a discount of about 3 per cent to Transurban Group’s last closing price. Shares in Transurban Group dropped 2.64 per cent today, closing at $5.54.
New Hope Corporation Limited’s (ASX:NHC) first half net profit has fallen 75 per cent, compared to the prior half when it sold its stake in Arrow Energy.
TPG Telecom Limited’s (ASX:TPM) first half net profit has improved 65 per cent, boosted by subscriber growth. The telco has affirmed its on track to generate full year earnings of up to $260 million.
Iron ore developer Sundance Resources Limited (ASX:SDL) has inked an agreement to explore how mineral explorer Equatorial Resources Limited (ASX:EQX) may utilise its rail and port infrastructure in West Africa.
Dual-listed grain handler Viterra (ASX:VTA, TSE:VT) has revealed it’s in exclusive talks with a third party regarding its possible takeover. Reports have speculated Glencore could be looking to bid up to $5.2 billion.
Best and worst performers
Most sectors dipped into negative territory by close: The best performing sector was Real Estate Investment Trusts adding 3 points to close at 823. The worst performing sector was Industrials, losing 50 points to close at 3,765 points.
The best performing stock in the S&PASX 200 was Intrepid Mines Limited (ASX:IAU), rising 12.5 per cent to close at $0.90. Shares in Henderson Group (ASX:HGG) and TPG Telecom Limited (ASX:TPM) also closed higher.
The worst performing stock was White Energy Company Limited (ASX:WEC), dropping 5.63 per cent to close at $0.335. Shares in OneSteel Limited (ASX:OST) and Ramelius Resources Limited (ASX:RMS) also closed lower.
Commodities
Gold is trading at $US1,656 an ounce.
Light crude is $0.66 down at $US107.43 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0562.
