After starting higher the Australian share market retreated into the red by mid afternoon as sentiment turned cautious. US President Barack Obama has warned markets could go ‘haywire’ unless a deal is reached to allow US Congress to lift the nation’s debt limit. By close the local mining sector had lost 0.2 per cent, weighed down by the majors after Rio Tinto Limited’s
(ASX:RIO) latest production result failed to impress.
Figures The S&P/ASX 200 index closed 3 points lower at 4,717.
The value of trades was $3.4 billion on volume of 728 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Telstra Corporation Limited
(ASX:TLS) and National Australia Bank Limited
(ASX:NAB).
On the futures market the SPI is 3 points higher.
Company news Rio Tinto Limited
(ASX:RIO) has beaten its iron ore guidance, boosting global production for the steel making commodity by 4 per cent to a record 253 million tonnes last year. However, the global miner’s fourth-quarter operations review also revealed Rio Tinto fell short of meeting annual production forecasts for its second largest division, copper, despite production lifting 6 per cent over 2012. CEO Tom Albanese says Rio Tinto achieved record annual iron ore production and shipments and delivered substantial production increases in its copper, bauxite, alumina, thermal coal and titanium dioxide businesses. Shares in Rio Tinto closed 0.14 per cent lower at $65.90.
Billabong International Limited
(ASX:BBG) has received another takeover bid from a consortium including private equity firm Altamont Capital Partners and American VF Corporation. The consortium is offering $1.10 cash per share to acquire the troubled retailer, matching a rival bid from Billabong executive Paul Naude’s consortium which was launched last month. Shares in Billabong International surged 15.98 per cent, closing at $0.98.
Leighton Holdings Limited
(ASX:LEI) lifted following news the construction giant’s Papua New Guinea division has won a $200 million contract to build Esso Highland’s head office in Port Moresby.
Uranium producer Paladin Energy Limited (ASX:PDN, TSE:PDN) gained amid M&A activity in the uranium sector with a subsidiary of Russia’s Rosatom reportedly paying $US1.3 billion for almost half of Uranium One, Inc. (TSE:UUU).
Gold and base metal explorer Ark Mines Limited
(ASX:AHK) surged after inking a deal with Arafura Resources Limited
(ASX:ARU) to mine, farm-in and joint venture two of Arafura’s gold projects in the Northern Territory.
Exploration company Fox Resources Limited
(ASX:FXR) rose after signing a Memorandum of Understanding with Pilbara Minerals Limited
(ASX:PLS) to establish a joint venture over Pilbara’s Western Australian tenements.
Best and worst performers The best performing sector was health care, adding 96 points to close at 11,610.
The worst performing sector was teclo services, losing 21 points to close at 1, 515 points.
The best performing stock in the S&PASX 200 was Billabong International Limited
(ASX:BBG), rising 15.98 per cent to close at $0.98. Shares in Beadell Resources Limited
(ASX:BDR) and Mount Gibson Iron Limited
(ASX:MGX) also closed higher.
The worst performing stock was Northern Star Resources Limited
(ASX:NST), dropping 5.79 per cent to close at $1.14. Shares in Resolute Mining Limited
(ASX:RSG) and Maverick Drilling and Exploration Limited
(ASX:MAD) also closed lower.
IPOs Ecosave Holdings Limited
(ASX:ECV) started trading today. The provider of energy efficiency solutions listed with an issue price of $1.00, opened at $1.40 and a closed at $1.36.
Commodities
Gold is trading at $US1,670 an ounce.
Light crude is $0.32 down at $US93.82 a barrel.
The Australian dollar
The Australian dollar is buying $US1.054.
