The Australian share market was unable to sustain morning gains, dipping into the red before noon and ending 0.2 per cent down, the third straight close in the red. The major miners and energy stocks managed to recover some of yesterday’s steep losses while Telstra Corporation Limited (ASX:TLS) fell and the banks dragged amid concerns for Greece’s political and economic situation.
The S&P/ASX 200 index lost 8 and to close at 4,157. On the futures market the SPI is steady.
Company news
Commonwealth Bank of Australia’s (ASX:CBA) third quarter unaudited cash earnings gained 3 per cent to $1.75 billion, putting it on track to hit a full year profit of nearly $7 billion. But the bumper result came with a warning, with Australia’s biggest bank claiming conditions in retail banking sector remain challenging highlighted by elevated wholesale funding costs, competitive deposit pricing and subdued credit demand. Shares in Commonwealth Bank fell 1.45 per cent today to close at $51.02.
BHP Billiton Limited (ASX:BHP) has decided to pull out from its joint venture to develop the Altia copper and silver deposit in Queensland with Breakaway Resources Limited (ASX:BRW). The global miner says it’s made the move following a commercial and technical review of the project. The exit comes one day after BHP’s chairman and CEO warned the miner would be pulling back from some of its investments. After losing 4 per cent yesterday, shares in BHP recovered 0.86 per cent today, closing at $32.77.
Insurance Australia Group Limited (ASX:IAG) has announced a strategic review of its UK business which booked an insurance loss of $5 million in the six months to the end of December 2011.
Sydney Airport Holdings Limited (ASX:SYD) has confirmed its full year distribution guidance and says it is working on a new vision which will add capacity to Sydney Airport.
Echo Entertainment Group Limited (ASX:EGP) has welcomed the findings of an inquiry clearing the company, that owns Star casino, of wrongdoing regarding its investigation of sexual harassment allegations against past Managing Director Sid Vaikunta.
Shares in Aurora Oil & Gas Limited (ASX:AUT) slumped after announcing a $120 million equity raising to advance development in Texas, with some reports suggesting the raising has fallen up to $100 million short of expectations.
Best and worst performers
The best performing sector was Materials adding 83 points to close at 9,910.
The worst performing sector was Telco Services, losing 17 points to close at 1,228 points.
The best performing stock in the S&PASX 200 was Paladin Energy Limited (ASX:PDN), rising 9.44 per cent to close at $1.28. Shares in Saracen Mineral Holdings Limited (ASX:SAR) and Regis Resources Limited (ASX:RRL) also closed higher.
The worst performing stock was Mirabela Nickel Limited (ASX:MBN), dropping 11.76 per cent to close at $0.30. Shares in Aurora Oil & Gas Limited (ASX:AUT) and Sundance Resources Limited (ASX:SDL) also closed lower.
Commodities
Gold is trading at $US1,552 an ounce.
Light crude is $0.80 up at $US93.61 a barrel.
The Australian dollar
The Australian dollar is buying 99.58 US cents.
