After briefly rising into positive territory following the release of March quarter GDP figures, the local share market slipped back into the red to close lower this afternoon on earnings downgrades and profit taking. A fall in Asian stocks on news Japan’s Prime Minister has resigned, also weighed on sentiment.
The S&P/ASX 200 Index finished the day 32 points weaker at 4,381. While on the futures market, the SPI200’s down 26.
To company news around this afternoon: Property developer Mirvac Group Ltd (ASX:MGR) has reaffirmed that its operating earnings for financial year 2010 are forecast to be 9.2 cents per stapled security. Mirvac says strong residential sales activity has resulted in $800.4 million in pre-sales as at May 27, 2010, 16% higher than at December 31, 2009. Managing director Nick Collishaw says the company continues to see strong demand for its residential offerings across Australia from second and third home buyers as well as investors. Shares in Mirvac Group closed flat at $1.27.
Aussie gold miner Newcrest Mining Ltd (ASX:NCM) says the Federal Government’s proposed Resources Super Profits Tax will not harm its Cadia East copper/gold project. CEO Ian Smith told Reuters that Cadia East is still a very robust project for the company and is not under threat from this proposed Tax. Mr Smith made the comment to Reuters at an industry conference where miners voiced their anger over the tax and the impact it would have on investments. Newcrest Mining shares closed 1.17% lower at $32.02.
Also making news: CBH Resources Ltd (ASX:CBH) says its directors have accepted a takeover bid made by the company’s largest shareholder, Japan’s Toho Zinc.
Listed health information technology company, iSoft Group Ltd (ASX:ISF), has downgraded its earnings expectations for fiscal 2010 due in part to uncertainty surrounding the change in Government in the UK and the debt situation in Europe.
Insurance Australia Group Ltd (ASX:IAG) says it will incur a one-off, pre-tax charge of around $365 million and report a full year insurance margin of between 6 and 7%, down from previous guidance of 9.5 to 11%.
And US hospital operator Tenet Healthcare Corp is reportedly one of the bidders with an offer on the table for private hospital owner Healthscope Ltd (ASX:HSP).
In the best and worst performers: The best performing sector at close was the Telco Services index, up 27 points at 1,032. The worst performer was the Utilities index; down 61 points at 4,030.
The best performing stock in the S&P/ ASX200 was Gunns, shares rose 5.81% to $0.455, while shares in Sundance Resources and PaperlinX also closed higher.
The worst performing stock in the S&P/ASX200 today was iSoft Group, shares plunging 30.36% to close at $0.39. Shares in Ausenco and Emeco Holdings also closed weaker today.
In commodities, gold is trading at $1,223.75 U.S an ounce, and light crude is down $0.58 to $72 U.S a barrel.
