Well after a relatively strong start to the session, the market pulled back...losing ground from late morning to end the day flat. Money left the resources space with heavyweight energy and mining stocks feeling the pinch. Many of the financials though did manage to hold on.
The S&P/ASX200 Index closed flat at 4,643. On the futures market, while the SPI is up 11 points.
Turning to company news: Rio Tinto has confirmed at an industry conference that first quarter iron ore production will be hit by the recent string of cyclones to lash Australia. The storms flooded rail lines and forced ports to suspend operations. Rio Tinto’s iron ore chief, Sam Walsh, says damage from the earthquake and tsunami in Japan also held wide implications for the mining sector. But it wasn’t all bad... Walsh adding that iron ore producers are facing a bright future, saying the outlook warranted spending billions of dollars to expand mines in Australia. Shares in Rio Tinto fell 0.56 per cent to close at $80.55.
And Fortescue has been forced to defend itself against some hostile words from Rio Tinto. The swipe from Rio was about the iron ore miner’s dominance in the Pilbara. Fortescue holds more than 85 thousand square kilometres of Pilbara land...far more than BHP and Rio combined. Rio says, ‘Beware those who boast of having more land under lease than any other company’...adding, ‘that isn't mining. That's real estate.’ Fortescue hit back saying, ‘without land, without tenements, you don't actually have a mining operation.’ Shares in Fortescue fell 1.18 per cent to close at $5.88.
Also making news: A court has been told the newly appointed Ten Network chief, James Warburton, took commercially sensitive documents with him as he left the Seven Media Group. And the ACCC has denied running its Federal Court case to block Metcash’s takeover of Franklins on a false basis.
Taking a look at other news: New Hope has more than tripled its first half earnings, booking a net profit of 407 million dollars from 112 million dollars the year before. The coal producer’s latest result was boosted by the sale of its near 17 per cent stake in Arrow Energy, adding $326 million to its interim profit.
Shares in TPG Telecom have jumped after the telco announced double-digit growth in first half earnings and upgraded its full year guidance.
In the best and worst performers: the best performing sector was Utilities with the index gaining 49 points to close at 4,115. The worst performing sector was the Energy sector, falling 134 points to close at 16,280.
The best performing stock in the S&P/ASX200 was TPG.. shares rising 8.46 per cent to close at $1.47 and-a-half cents. Shares in Lynas Corporation and Ardent Leisure also closed in positive territory today.
The worst performing stock was Murchison Metals, shedding 6.69 per cent to close at $1.11 and-a-half cents. Shares in Mincor Resources and Sundance also closed weaker today.
In commodities, gold is trading at $US1,430 an ounce and Light crude is 14 cents weaker at $US102.19 a barrel.
