The Australian share market fell 1.3 per cent into the new week with resources leading declines amid sinking commodity prices. Cost concerns continue to plague iron ore miners as the price of the steel making commodity hit fresh six-year lows. The energy sector shed 4.6 per cent by close, weighed down by a lower oil price and Caltex Australia Limited’s
(ASX:CTX) stock drop.
Figures
The S&P/ASX 200 index tumbled 74 points to close at 5,846.
The value of trades was $9.9 billion on volume of 878 million shares at the close of trade.
The top three stocks by value were Caltex Australia Limited
(ASX:CTX), Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC).
On the futures market the SPI is 68 points lower.
Company news
Shares in PanAust Limited
(ASX:PNA) soared after the copper and gold miner scored another takeover offer from one of its shareholders, Guangdong Rising Assets Management. The Chinese state-owned resources group is offering $1.71 per share to buy PanAust, valuing the company at about $1.1 billion but down from a bid of $2.30 per share last year. Shares in PanAust soared 40 per cent to close at $1.72.
Shares in Caltex Australia Limited
(ASX:CTX) dropped after US based oil and gas giant Chevron decided to divest is long held 50 per cent interest in the fuel refiner and retailer. Caltex says Chevron’s move was driven by a broader portfolio review and will not affect Caltex’s business or ability to reliably and competitively deliver fuel. Shares in Caltex Australia dropped 9.08 per cent to close at $34.44.
Law firm Slater and Gordon Limited
(ASX:SGH) plans to raise $890 million to fund a $1.2 billion purchase of the professional services division of UK-based Quindell.
Shares in Novogen Limted
(ASX:NRT) closed almost 16 per cent stronger after the biotec group reported key data confirming its experimental anti-cancer drug, Cantrixil, kills ovarian stem cells.
GR Engineering Services Limited
(ASX:GNG) has been named the preferred tenderer for Sirius Resources NL's
(ASX:SIR) Nova Nickel Project in Western Australia.
Medical device company Compumedics Limited
(ASX:CMP) has secured a $375,000 deal to supply its Doppler-Box technology to key military hospitals in China.
Best and worst performers
The sector with the fewest falls was health care, easing 0.2 per cent to close at 19,201.
The worst performing sector was energy, losing 4.6 per cent to close at 10,726 points.
The best performing stock in the S&P/ASX 200 was PanAust Limited
(ASX:PNA), rising 40 per cent to close at $1.72. Shares in Metcash Limited
(ASX:MTS) and Qantas Airways Limited
(ASX:QAN) also closed higher.
The worst performing stock was Caltex Australia Limited
(ASX:CTX), dropping 9.08 per cent to close at $34.44. Shares in Santos Limited
(ASX:STO) and Ten Network Holdings Limited
(ASX:TEN) also closed lower.
Commodities
Gold is buying $US1,194 an ounce.
Light crude is $2.56 lower at $US48.87 a barrel.
Currencies
The Australian dollar is buying $US0.7718.
