13/04/2011 17:28:00
The Australian share market recovered from earlier losses to close slightly higher. Gains were driven by the major banks, while energy and resource stocks closed mainly lower.
The S&P/ASX200 Index firmed 12 points to close at 4,911. On the futures market, the SPI is down 4 points.
Company news: Rio Tinto Ltd (ASX:RIO) says extreme weather conditions resulted in a 3 per cent fall in global iron ore production in its first quarter. Australian hard coking coal output dropped 12 per cent while thermal coal output was steady with the same time a year before. CEO Tom Albanese says Rio’s “Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather, but, most are recovering and are benefiting from continued strong prices”. Shares in Rio Tinto closed the day 1.48 per cent weaker at $85.71.
Rio’s 75 per cent owned subsidiary, Coal & Allied Industries Ltd (ASX:CNA), has booked an 18 per cent drop in first-quarter coal production and confirmed that sales to Japan are expected to fall following the earthquake and tsunami that struck the country. However, the thermal coal producer says lower demand from Japan is likely to be offset by sales to consumers in other parts of Asia. Coal & Allied has maintained its target for saleable production to increase between 5 and 10 percent above the 2010 level. Shares in Coal & Allied Industries fell 0.68 per cent to close at $123.26.
Paladin Energy Ltd (ASX:PDN) closed 1.42 higher, after a substantial shareholder notice filed to the Australian Securities Exchange revealed gold producer Newmont Mining Corporation (ASX:NEM) has bought a 6.7 per cent stake in the uranium producer.
Engineering firm Worleyparsons Ltd (ASX:WOR) has been awarded a contract from the Abu Dhabi National Chemical Company for the design and construction of one the world’s largest reformers located in Abu Dhabi.
Shares in Rio Tinto Ltd's (ASX:RIO) 68 per cent owned subsidiary, Energy Resources of Australia Ltd (ASX:ERA), plunged 10.88 per cent after the uranium producer warned it expects to post a first half loss.
Shares in Tabcorp Holdings Ltd (ASX:TAH) rose 2.35 per cent after the gaming company booked a 5.4 per cent increase in revenue for the March quarter.
Best and worst performers: The best performing sector was Real Estate Investments Trusts with the index adding 12 to close at 860. The worst performing sector was Materials, dipping 92 points to close at 14,652. The best performing stock in the S&P/ASX200 was Hastie Group shares rose 18.37 per cent to close at $0.29, after plunging over 70 per cent yesterday. Shares in Goodman Group and Qantas Airways also closed in positive territory today. The worst performing stock was Energy Resources of Australia, shedding 10.88 per cent to close at $6.88. Shares in White Energy and Gunns also closed weaker today.
Commodities: Gold is trading at $US1,458 an ounce. Light crude is $0.35 cents up at $US106.60 a barrel.