The market as a whole has posted a decent gain for the day, with the S&P/ASX 200 (INDEXASX: XJO) (ASX: XJO) rising 0.8% to 5,906.6. The big four banks helped drive the gains while the big miners slumped.
With iron ore prices sliding below US$50 per tonne, it was no surprise that two iron ore miners, Arrium Limited (ASX: ARI) and Fortescue Metals Group Limited (ASX: FMG) were the biggest losers in the index, falling 6.3% and 4% respectively. There must be serious doubt about the junior Australian iron ore miners managing to keep their heads above water with the iron ore price below US$50 per tonne.
UGL Limited (ASX: UGL) fell 3.3% to $1.33 after the company revealed it was facing legal action related to market disclosure regarding the Ichthys Power Plant project. Back in November, the company announced that a joint venture UGL was involved in could face a massive damages claim, after reporting $200 million in cost blowouts, which shocked the market. We covered it in more detail here.
Pet supplies retailer and veterinarian Greencross Limited (ASX: GXL) fell 3.4% to $7.70 and has now lost 13.7% in the past week. The company recently reported that it held 8% of the Australian pet care market and is targeting 20%. With the total pet care market worth an estimated $9 billion, Greencross would be bringing in around $1.8 billion in revenues at 20% market share. With 196 stores out of around 3,000 stores, there is substantial scope for the retailer to capture more market share.
Navitas Limited (ASX: NVT) fell 3.2% to $4.54 and is down 10.6% since the start of the year. The issues surrounding vocational education provider Vocation Limited (ASX: VET), may be weighing on Navitas and Credit Suisse cutting Navitas to 'underperform' today doesn't help either. Navitas disappointed the market with its interim result in February, and many analysts think the company won't be able to meet its own full-year guidance.
