Business News

Australian shares fall; S&P/ASX 200 down 1.56%

by Andrew Newton Brown

Australian shares plummeted today with the S&P/ASX 200 down 1.56 per cent.

The S&P/ASX 200 dropped 72.4 points, or 1.56 per cent, to 4582.3.

In news, the carbon tax plan was revealed over the weekend. Among the major miners, BHP Billiton lost $0.65, or 1.45 per cent, to $44.30 and Rio Tinto was $1.15, or 1.36 per cent, lower to $83.20. Fortescue Metals took off $0.04, or 0.61 per cent, to $6.49.

In airline news, Qantas estimates the cost impact of the carbon price system to be around $110 to $115 million in the financial year ending 30 June 2013. Shares fell $0.065, or 3.25 per cent, to $1.935.

Virgin Australia says the proposed fixed carbon price of $23 per tonne will impact domestic airlines through an increase in the aviation fuel excise and based on domestic fuel consumption, it estimates a cost impact of around $45 million in the 2013 financial year. Shares dropped $0.01, or 2.86 per cent, to $0.34.

In energy, Woodside Petroleum lost $1.06, or 2.57 per cent, to $40.14, Santos fell $0.26, or 1.91 per cent, to $13.38 and Oil Search was $0.05, or 0.75 per cent, lower to $6.66.

And among the retailers, Wesfarmers dropped $0.61, or 1.91 per cent, to $31.37 and Woolworths fell $0.25, or 0.9 per cent, to $27.53.

Bannerman Resources announced it had received a highly conditional proposal from Hanlong Mining Investment Company, which is a subsidiary of Chinese conglomerate Sichuan Hanlong Group to acquire Bannerman for $0.612 per share. Bannerman shares jumped $0.09, or 23.38 per cent, to $0.475.

To Asia, the Nikkei had risen 68.2 points, or 0.67 per cent, to 10,069.5 and the Hang Seng was 313.1 points, or 1.38 per cent, higher to 22,413.3.

The Australian dollar was buying 107.18 US cents, 67.04 pence Sterling, 75.55 euro cents and 86.58 Japanese yen.

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Published on: Monday, July 11, 2011

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