Aussie stocks slumped out of the blocks and were trading down 1.2% by lunch following a weak lead from international markets. The materials and resources sector and the banks, the source of strength for the market in recent months, were both heavily sold.
The market is currently trading at levels that were passed for the first time since the GFC in mid-September.
At midday, the All Ords lost 55.0 to 4,631.4, while the ASX/200 shed 55.2 to 4,615.4. About 1 billion shares worth around $1.7 billion had changed hands.
All the big four banks were down between 1% and 2% seeing the broader Banks and Financials sector 1% lower.
ANZ shed 45c to $21.48. Australia’s number four bank is considering selling bonds in the US, sources reported today.
Macquarie Group gave up 66c to $47.74.
The insurers were also weaker, most down between 1% and 1.5%, with the notable exception being AXA Asia Pacific, which rose 3c to $5.77.
The Property Trusts sector outperformed the market, putting on 0.2% on the back of an 18c gain to $11.98.
Goodman Group climbed 0.9% to 56c after announcing the construction of a $340 million warehouse.
The gold miners continue to retreat as the price of the precious metal declines.
Newcrest Mining lost $1.01 to $34.74. The company has dropped nearly 15% in value in the last week.
Smaller rival Lihir Gold shed 8c to $3.28.
The broader Materials and Resources sector retreated 1.8%.
BHP Billiton sank 77c to $40.29. This morning the Big Australian announced the sale of its Ravensthorpe nickel mine in Western Australia to a Canadian miner for US$340 million.
Rio Tinto lost $1.45 to hit two week lows for the stock.
Many of the major stocks in the sector were down over 2%, however chemicals manufacturer Orica put on 41c to $24.51, while concrete manufacturer Adelaide Brighton climbed 2.4%.
The Energy sector sank 1.4%. Woodside lost 97c to $47.23. Oil Search shed 11c to $5.73, while Santos gave up 32c to $14.36. Coal miners were mostly lower, however newcomer Stanmore Coal surged 60% to 32c on its first day on the exchange.
Consolidated Media lost just 1c to $3.06, the day after Jamie Packer upped his stake in the company by just over 1% to 45.3%
Jamie Packer’s other company, Crown dropped 14c, or 1.8% to $7.79.
The Consumer Discretionary sector weakened 0.8%.
Department stores David Jones and Myer countered a broader decline in Consumer Discretionary stocks to put on 1.1% and 1.3% to $5.50 and $3.80 respectively.
The Consumer Staples was off 0.7% to $27.02, the same level seen on 19 August.
Wesfarmers dipped a more modest 4c to $28.83.
Industrials lost 1.2% with most stocks trading below the gain line.
Alesco slumped 8.9% after forecasting a 29% slump in first half EBITA.
Leighton gave up 54c to $36.32, while Qantas lost 3.4% to $2.59.
Toll bucked the trend, adding 1.1% to $8.17.
The Telecommunications sector joined property trusts as the only sectors in positive territory with another 0.2% gain. Sector major Telstra tacked on 1c to $3.43.
Around the region, the Nikkei 225 lost 113.8 to 10,026.7, while the Straits Times Index shed 16.0 to 2,789.5. Meanwhile, the NZSE50 slid 17.2 to 3,120.1.
Spot gold was trading at US$1,131.00 per ounce, and the Aussie was buying US$0.9052.
BHP offloads Ravensthorpe for US$340m
BHP Billiton said it had offloaded its Ravensthorpe Nickel Mine to First Quantum Minerals Australia Pty Ltd, a wholly owned subsidiary of Canadian company First Quantum Minerals Ltd for US$340m. BHP said that a result of the sale it would reverse a previously recognised pre-tax impairment charge from 30 June 2009 of around US$630 million, or US$441 million post tax, for the half year ended 31 December 2009.
At midday, BHP shares were down 72c to $40.33.
Goodman Group to build $340m warehouse
Goodman Group and Goodman Hong Kong Logistics Fund would build, through their Goodman Interlink Limited joint venture, a $340m, 24 storey warehouse and distribution centre in the hear of Hong Kong’s ports district. Construction is expected to be completed by January 2012 and has been forecast to deliver a yield on cost of 9%, with 50% of the floor space having been pre-leased by two major logistics companies.
At lunch, Goodman shares were up 0.5c to 56c.
Transfield, Worley JV awarded $76m contract
The Transfield Services – WorleyParsons Limited joint venture signed a seven-year contract valued at about $76m to deliver integrated services to Shell Philippines Exploration at its Malampaya gas facility. The companies said the contract includes a three-year extension option.
At noon, Transfield shares were unchanged at $3.91, while WorleyParsons shares were down 69c to $27.43.
Alesco expects 29% fall in 1H profit
Alesco Corporation forecast a 29% drop in half year EBITA compared to the previous corresponding period based on preliminary unaudited management accounts. The company said it is expecting EBITA to total $30 million at the end of the six-month period.
At lunchtime, Alesco shares were down 44c to $4.48.
Linc signs Fuel Cell Technology agreement
Linc Energy said it has signed an agreement with UK-based fuel cell technology company AFC Energy and its related company, B9 Coal, giving it the right to test the AFC Fuel Cell Technology on hydrogen produced from underground coal gasification for two years. Linc said it would purchase the first Alpha Fuel Cell System for £200,000 and has an option to invest £2.3 million into AFC Energy stock to extend the exclusivity period in perpetuity.
At midday, Linc Energy shares were up 1.5c $1.55.