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Investors locked in profits ahead of the weekend on the belief the recent rally had run its course. Miners struggled following a drop in commodity prices, while financials was the weakest performing sector.  

At the end of the day, the All Ords had fallen 35.6 to 4,722.6, while the ASX/200 dropped 41.5 to 4,706.4. About 2.3 million shares worth around $4.6 billion had changed hands.

The Materials and Resources sector lost 1.2% as the price of nickel hit four-month lows in London overnight.

BHP Billiton weakened 54c to $39.01, while Rio Tinto edged 32c, or 0.5% lower to $69.52.

Gold miner Newcrest fell $1.01 to close at $34.57 after the price of the precious metal lost ground, ending a nine-day rally. Lihir slid 8c to $3.36.

Bluescope shed 2c to $2.87 after featuring heavily in broker reports this morning.

Energy stocks retreated 0.7% following broad-based losses among sector peers on Wall Street and a 3% fall in the price of crude.

Oil Search and Origin lost 1.5% and 1.1% to $5.81 and $16.22 respectively.

Woodside dipped 10c to $48.96.

Meanwhile, uranium specialist Paladin lost 2.6% to $4.12.

The Banks and Financials sector shed 1.3%.

NAB weakened $1.19, or 4% to $28.89, while Bank of Queensland dipped 42c or 3.5% to $11.71. Both stocks went ex-div today.

ANZ was down 46c to $22.48, while insurer AXA Asia-Pacific advanced 6c to $5.76.

Investment bank Macquarie slid 62c, or 1.3% to $48.85.

Property Trusts fell 0.8% on the back of a 15c, or 1.2% drop in the price of Westfield shares to $12.38. JPMorgan downgraded the stock to ‘neutral’.

Losers heavily outnumber gainers in the Industrial sector by the end of the day resulting in a 0.7% drop for the sector.

Leighton lost 21c, or 0.6% to $37.53, while Asciano shed 3c to $1.61.

Reece Australia sank 3.9% to $22.61 as Brambles dipped 3c to $6.96.

Boart Longyear added 1c to 31c.

The Consumer Discretionary sector lost 0.1%.

Kathmandu jumped 3.5%, or 6c to $1.76 as the adventure clothing and equipment retailer made its share market debut. Kathmandu floated with an issue of 200 million shares, valuing the company at around $352 million.

Myer shed 1c to $3.91, still well below the $4.10 offer price nearly two weeks after listing.

Gamers remained relatively flat throughout the day with the exception of Tabcorp, which lost 9c to $7.27 following newspaper reports it would move into pubs with a bid for National Leisure and Gaming. National Leisure shares soared 33.3% to 4c each.

The Consumer Staples sector weakened in the afternoon but still outperformed the market by rising 0.5%. Wesfarmers added 21c, or 0.8% to $27.90, while Woolworths slid 4c to $28.04.

Foster's and Coca-Cola Amatil gained 7c and 11c to $5.61 and $10.52 respectively.

GrainCorp shed 6c to $6.63 as the grain handler confirmed the completion the acquisition of United Malt Holdings Limited for $757 million, therefore doubling the size of the company.

Telstra gained 2c to $3.30, to lead the Telecommunications sector 0.5% higher.

SPT Telemedia surged 15c, or 9.8% to $1.68 following the agreement earlier in the week to purchase Pipe Networks.

Healthcare stocks were down 0.2% as sector major CSL lost 23c to $31.77.

Around the region, the Nikkei 225 shed 33.2 to 9,771.3, while the Straits Times Index lost 12.9 to 2,713.4. Across the Tasman, the NZSE50 dipped 13.9 to 3,158.1. The Hang Seng added 24.2 to 22,421.8.

Spot gold was trading at US$1,105.10 per ounce, and the Aussie was buying US$0.926. 

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GrainCorp doubles in size
GrainCorp today confirmed completion of the acquisition of United Malt Holdings Limited (“UMH”) for $757 million. The company said the purchase of the Canada Malting Company (Canada), Great Western Malting (USA), Bairds Malt (UK), and Barrett Burston Malting (Australia) transforms GrainCorp from an eastern Australian storage and handling service provider into an international agribusiness operating across four countries.

At the final whistle, GrainCorp shares were down 6c to $6.63.

Bow to raise $50m to fund plant development
Bow Energy said it has entered into binding commitments to raise a minimum of $50 million via a capital raising to fund the development of a 30 megawatt gas-fired power station to be fuelled by gas from the company’s Blackwater CSG field in Central Queensland. The company said funds would also be allocated to further exploration and appraisal of the Bow’s CSG tenements and other corporate and offer costs and to provide additional working capital.

At the close, Bow Energy shares were down 14c to $1.38.

Warehouse first quarter sales drop 1%
The Warehouse Group reported a 1% drop in sales to $362.9m for the quarter ended 1 November 2009 versus the previous corresponding period. The New Zealand based group said first quarter sales, adjusted for discontinued activities, were up 1.1% to $317.7 million with same store sales up 0.5%.

By the finish, The Warehouse Group shares were down 5c to $3.25.

Automotive Holdings trading on the improve
Automotive Holdings Group reported an unaudited NPAT from continuing operations for the four months to 31 October 2009 of $16.7m, representing a 67% on the previous corresponding period. The company attributed the rise to improved market conditions and a continuation of a strong second half of FY09.

At the end of the day, Automotive Holdings' shares were up 8c to $2.24.

GPT unwinds offshore hedge positions
GPT Group said it has finalised the unwinding of its $1.2bn of excess offshore interest rate hedges at a cost of $152m. The group said the termination of the hedges would result in a reduction of GPT’s average interest rate across its borrowings of approximately 1.2%.

At the close, GPT shares were up 0.5c to 64.5c.

GrainCorp Limited (GNC) today confirmed completion of the acquisition of United Malt Holdings Limited (“UMH”) for $757 million. The company said the purchase of the Canada Malting Company (Canada), Great Western Malting (USA), Bairds Malt (UK), and Barrett Burston Malting (Australia) transforms GrainCorp from an eastern Australian storage and handling service provider into an international agribusiness operating across four countries.

GrainCorp said half the company’s earnings would now be derived from barley and wheat processing.

The company said to complete the acquisition it successfully raised about $600 million through the issue of new shares.

GrainCorp said the acquisition has effectively doubled the company’s size, meaning it is now the world’s fourth largest commercial malt producer and has a market value on the Australian Stock Exchange exceeding $1 billion.

Managing director Mark Irwin said the individual brand names and brand identities of the four malt businesses would be retained to maintain their brand strength.

GrainCorp said it would form a new business unit known as ‘GrainCorp Malt’, which is to be headed by former UMH CEO, Jim Anderson.

“It is important for us to emphasise that this acquisition was a unique opportunity to diversify the GrainCorp earnings base at a competitive price, it was not about ‘synergies’ or restructuring the malt businesses,” Mr Irwin said.

“While GrainCorp has a valuable portfolio of grain handling, storage and logistics assets, a major strategic weakness over the last few years has been our reliance on seasonal harvest conditions across the eastern states of Australia.”

He added that about 50% of total annual earnings would be derived from malt and flour production as a result of the acquisition.

"This means that our earnings will be more stable, and we will be able to more reliably generate value for shareholders,” Mr Irwin said.

The company also confirmed that the ACCC had provided advice that it did not propose to intervene in the acquisition.

As at 1430 AEDT, GrainCorp shares were down 7c to $6.62.

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Bow Energy Limited (BOW) said it has entered into binding commitments to raise a minimum of $50 million via a capital raising to fund the development of a 30 megawatt gas-fired power station to be fuelled by gas from the company’s Blackwater CSG field in Central Queensland. The company said funds would also be allocated to further exploration and appraisal of the Bow’s CSG tenements and other corporate and offer costs and to provide additional working capital.

Bow said the capital raising would include an institutional placement of 32 million shares at $1.25 per share to raise $40 million and a share purchase plan (“SPP”) underwritten to $10 million which would be offered $1.25 per share.

The company said the SPP raising would be capped at $37 million.

Managing director Ron Prefontaine said following the completion of the equity raising the company would have up to $95 million cash (after costs) available to put towards the company’s exploration, appraisal and development plans.

Bow said the issue price represents a 14% discount to the average closing price of Bow Energy's shares in the five days prior to the annoucement of the equity raising.

As at 1312 AEDT, Bow Energy shares were down 12c to $1.40.

The local market had lost 1.1% by noon Friday, though is still 3.7% higher for the week. Shares were weighed down by a slump in energy and resource stocks, while investors booked profits following the week’s strong gains.

At lunch, the All Ords had lost 46.7 to 4,711.5, while the ASX/200 shed 51.7 to 4,696.2. About 780 million shares worth around $1.9 billion had changed hands.

The Materials and Resources sector lost 1.6% as the price of nickel hit four-month lows in London overnight.

BHP Billiton lost 71c to $38.84, and was just pipped by the NAB as the largest points loss for the broader ASX/200.

Rio Tinto shed 89c, or 1.3% to $68.95.

Gold miner Newcrest lost nearly $1 to be at $34.66. Fortescue fell 8c to $3.99.

Bluescope shed 5c to $2.84 after featuring heavily in broker reports this morning. The stock hasn’t closed below its current level since 17 July.

Energy stocks retreated 0.7% following broad-based losses in that sector on Wall Street and a 3% fall in the price of crude.

Woodside, Oil Search and Santos all lost between 1% and 1.5%.

Meanwhile, uranium specialists Paladin and Extract Resources lost 2.6% and 3.1% to $4.12 and $8.14 respectively.

The Banks and Financials sector lost 1.5%.

NAB weakened $1.09, or 3.6% to $28.94, while Bank of Queensland dipped 42c or 3.5% to $11.71. Both stocks went ex-div today.

Westpac lost 14c to $25.90, while ANZ was down 38c to $22.56.

Investment bank Macquarie slid 36c, or 0.7% to $49.11.

Property Trusts fell 1.5% on the back of a 28c, or 2.2% drop in the price of Westfield shares to $12.25. JPMorgan downgraded the stock to ‘neutral’.

The Industrial sector was a mix of gainers and losers, though the latter outnumbered the former to see the sector down 0.7% at lunch.

Leightons lost 20c, or 0.5% to $37.54, while Asciano shed 4.5c to $1.595.

Seek fell 22c, or 3.6% to $5.94 as Brambles dipped 3c to $6.96.

Boart Longyear added 0.5c to 30.5c.

The Consumer Discretionary sector lost 0.4%.

Kathmandu jumped 6.5%, or 10c to $1.81 on its share market debut. Myer was steady at $3.92 and still below the $4.10 offer price nearly two weeks after listing.

Kathmandu floated with an issue of 200 million shares, valuing the company by lunch at around $362 million.

Gamers were relatively flat with the exception of Tabcorp, which lost 17c to $7.19 following newspaper reports it would move into pubs with a bid for National Leisure and Gaming. National Leisure shares soared 30% to 3.9c each.

The Consumer Staples sector outperformed the market by rising 0.6%. Wesfarmers added 35c, or 1.3% to $28.04, while Woolworths gained 19c to $28.19.

Foster's and Coca-Cola Amatil also posted gains, up 7c and 10c to $5.61 and $10.51 respectively.

Telstra gained 3c, or 0.9% to $3.31, to lead the Telecommunications sector 0.5% higher.

SPT Telemedia surged 21.5c, or 14.1% to $1.745 following the agreement earlier in the week to purchase Pipe Networks.

Healthcare stocks were down 0.6% as sector major CSL lost 33c to $31.67.

Around the region, the Nikkei 225 shed 53.4 to 9,751.1, while the Straits Times Index lost 17.9 to 2,708.4. Across the Tasman, the NZSE50 dipped 10.6 to 3,161.5.

Spot gold was trading at US$1,102.62 per ounce, and the Aussie was buying US$0.9252. 

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Warehouse first quarter sales drop 1%
The Warehouse Group reported a 1% drop in sales to $362.9m for the quarter ended 1 November 2009 versus the previous corresponding period. The New Zealand based group said first quarter sales, adjusted for discontinued activities, were up 1.1% to $317.7 million with same store sales up 0.5%.

At lunch, The Warehouse Group shares were unchanged at $3.30.

Automotive Holdings trading on the improve
Automotive Holdings Group reported an unaudited NPAT from continuing operations for the four months to 31 October 2009 of $16.7m, representing a 67% on the previous corresponding period. The company attributed the rise to improved market conditions and a continuation of a strong second half of FY09.

At noon, Automotive Holdings' shares were up 9c to $2.25.

GPT unwinds offshore hedge positions
GPT Group said it has finalised the unwinding of its $1.2bn of excess offshore interest rate hedges at a cost of $152m. The group said the termination of the hedges would result in a reduction of GPT’s average interest rate across its borrowings of approximately 1.2%.

At midday, GPT shares were down 1c to 63c.

Automotive Holdings Group Limited (AHE) reported an unaudited NPAT from continuing operations for the four months to 31 October 2009 of $16.7 million, representing a 67% on the previous corresponding period (“pcp”). The company attributed the rise to improved market conditions and a continuation of a strong second half of FY09.

Automotive Holdings said the result excludes profit on the sale of carsales.com shares of $4.9 million and the GST refund received in the pcp.

The company said pcp was heavily affected by the global economic downturn.

The group said EBITDA for the four month period totalled $35.7 million, an increase of 15% on pcp.

”EBITDA for the Automotive Retailing Division totalled $26.4 million (an increase of 23% on pcp) while EBITDA for the Logistics Division was $9.4 million (99% of pcp),” the company said.

Managing director, Bronte Howson, maintained a positive outlook for FY10, which he said was reflected in the improved new vehicle sales trend experienced in the last 6 months and a rebound in consumer confidence.

“We also expect a continued strong full year performance from our Logistics division which incurred start up costs in its engineering operations during the first 4 months,” Mr Howson said.

As at 1140 AEDT, Automotive Holdings' shares were up 7c to $2.23.

GPT Group (GPT) said it has finalised the unwinding of its $1.2 billion of excess offshore interest rate hedges at a cost of $152 million. The group said the termination of the hedges would result in a reduction of GPT’s average interest rate across its borrowings of approximately 1.2%.

GPT said the hedges became excess to requirements as a result of the GPT’s exit from the majority of its offshore assets.

”The mark to market value of these positions was -$317 million in December 2008 and -$160 million in June 2009,” the group said.

“The Group has also terminated foreign income hedges at a cost of $24 million. These positions were also excess to requirements.”

GPT added that the mark to market value of the positions was -$115 million in December 2008 and -$38 million in June 2009.

CFO, Michael O’Brien, said the group had now removed the potential for substantial mark to market volatility within these instruments and significantly reduced its interest cost.

“The strength of the Australian dollar against the US dollar and the Euro provided us with the opportunity to unwind the positions at a substantially lower cost than if we had unwound earlier in the year,” Mr O’Brien said.

GPT said it has also reduced its US dollar denominated debt from US$276 million to $US130 million and retained a $US130 million interest rate hedge against this outstanding debt.

As at 1124 AEDT, GPT shares were down 1c to 63c.