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The local share market has taken a big tumble today closing deep in the red. Broad selling wiped almost $40 billion of the market as global concerns over Europe’s debt crisis and an earnings downgrade from Aussie contractor Leighton Holdings weighed on the market. The miners took a hit today with BHP and Rio leading the declines in afternoon trade.
The S&P/ASX 200 Index closed the day 144 points weaker at 4,467. While on the futures market, the SPI200’s down 116.
In economic news: Figures released by the ABS today show that total personal finance commitments dropped 1.3% in March to $6.874 billion. Housing finance for owner occupation fell 3.4% to $13.534 billion in March. Economists say the weak figures may be incentive enough for the RBA to leave rates on hold next month and possibly the month after as well.
To company news around this afternoon: Mining giant BHP Billiton Ltd (ASX:BHP) says that any tax reform proposal must only apply to new investments and not to existing investments. In response to the threat of the federal government’s proposed mining tax, chairman Jac Nasser told shareholders that the miner has no issue with a review and reform of the tax system, but it must be conducted around sound principles. Additionally Mr Nasser says it must not destroy the necessary incentives to keep investing in Australia’s growth engine, the resources industry. BHP says the proposal would see its total effective tax rate on profit increase from 43% to 57% making Australian resources industry the highest taxed in the world. Mr Nasser says there is a risk that Australia could now be seen by the rest of the world as a less stable and less competitive place for long term investment. Last year BHP paid $6.3 billion in tax to Australian Governments. Shares in BHP Billiton closed 4.53% lower at $36.89.
In other news an independent expert has found a takeover bid by Japan’s Toho Zinc for Aussie lead, zinc and silver miner, CBH Resources Ltd (ASX:CBH), to be fair and superior to a rival bid by Nyrstar. Toho is offering to acquire all of the shares in CBH it does not already own for 24 cents cash per share. The bid rivals one from Belgium’s Nyrstar who offered 19.5 cents a share. CBH Resources shares closed 2.17% higher at $0.235.
Also making news: Mineral sands miner Iluka Resources Ltd (ASX:ILU) has launched an online sales website designed for small customers wishing to secure volume directly from the company.
Macarthur Coal Ltd (ASX:MCC) and its biggest shareholder China’s CITIC have agreed to extend the date by which Macarthur must hold a shareholder meeting to approve a deal between the two companies. Macarthur announced on December 22, its desire to acquire all of CITIC’s direct interests in certain of the miner’s operating assets, as well as terminate CITIC’S marketing rights over coal generated from those operating assets.
Elders Ltd (ASX:ELD) has reported a $165 million loss for the six months to March 31, significantly improving on its previous first half.
And Leighton Holdings Ltd (ASX:LEI) has announced a $400 million profit for the nine-months to March 31- almost double that of a year ago.
In the best and worst performers: All sectors closed in the red today, however the sector at close with the smallest loss was the Telco Services index, down 8 points at 1,013. At the other end, the Materials had a nightmarish day on the market today with the index; closing 451 points lower at 11,422.
Not many stocks in the S&P/ ASX200 finished in positive territory, however of those that did Perseus Mining was the best performer, shares rose 9.9% to $2.22, while shares in Elders and Eldorado Gold also closed higher.
The worst performing stock was Atlas Iron, shares dropped 9.05% to $2.11. Shares in Mt Gibson Iron and Murchison Metals also closed weaker today.
In commodities, gold is trading at $1,239 U.S an ounce and light crude is down $1.57 to $70.04 U.S a barrel.