Local shares bounced back from morning losses though still finished lower and ending the week 0.3% higher than last Friday's close. The banks were mixed, while gains from consumer staples and the energy sector capped losses from the mining sector.
At the end of the day, the All Ords lost 17.7 to 4,671.9, while the ASX/200 shed 19.8 to 4,650.5. About 2.5 billion shares worth around $8 billion had changed hands.
Telstra slumped 12c, or 3.4% to $3.43 after cutting its full year revenue forecast as more houses move to not having fixed line phones.
The telco also agreed to terms of engagement for its participation in the NBN rollout.
The Telecommunications sector was 2.7% in the red.
The Banks and Financials sector finished 0.2% lower.
The banks were mixed. ANZ shed 24c to $21.34 and NAB sank 66c to $25.99. The former said at its AGM this morning that it was expecting bad debts to decrease and profits to rise in the year ahead
CBA climbed 78c, or 1.5% to $52.86. Westpac advanced 14c, or 0.6% to $23.49.
AMP added 16c, or 2.5% to $6.51. Yesterday NAB trumped AMP and AXA SA’s joint bid for the insurer.
AXA Asia Pacific shares rallied 12c to $6.49.
Investment bank Macquarie slid 40c to $45.95.
Among the Materials and Resources gold stocks were particularly weak after the price of the precious metal dropped 2.6% overnight.
Lihir and Newcrest fell 4.6% and 3% to $3.12 and $34.18 respectively.
The world’s largest miner BHP Billiton lost 81c, or 2% to $40.60. Rio Tinto slid 56c to $71.09.
The sector was down 1.8%, with base metal prices down at least 1.8% in London overnight.
The Energy sector overcame a morning loss to edge 1% higher for the day. Woodside rallied 92c to $47.62, while uranium specialist Energy Resources added $1.03 to $23.61.
Oil Search gained 11c, or 1.9% to $5.79 and Origin rallied 35c, or 2.2% to $16.39.
WorleyParsons lost 54c, or 1.9% to $27.45.
Leighton slid 27c to $36.74. The company announced it had completed a $670 million Syndicated Performance Bond Facility with a consortium of Australian and International lenders.
The Industrial sector strengthened 0.4%.
Brambles lost 6c to $6.25, while Macquarie Airports added 6c to $2.92 as it reported a 7.8% increase in passenger numbers at Sydney Airport for the month of November.
Asciano spiked 9c, or 5.4% to $1.77 after announcing it is the preferred rail operator to transport magnetite from Xstrata Copper’s Ernest Henry Mining operation in Queensland in a contract that is expected to generate revenue of approximately $400 million over a 10-year period.
Wesfarmers, down 3.4% at lunch, led a rally in the afternoon as the Consumer Staples sector closed 0.3% higher. The stock finished 12c, or 0.4% above the line at $29.32.
Foster’s dropped 1.8% to $5.51 after the brewer said its wine performance in the first half would be below the company’s expectations due to exchange rate movements and US market conditions.
GrainCorp added 8c to $5.91. The grain handler said it had plans to exit the merchandise sector by the end of FY10 and sell a number of its merchandise service centres.
The Consumer Discretionary sector also rose 0.3% in a mixed day relative to other sectors.
Retailers David Jones and Pacific Brands dropped 3.5% and 1.3% to $5.25 and $1.105 after a surprise fall in retail sales in the UK last month.
Aristocrat rallied 19c or 4.9% to $4.08. The larger gamers Crown and Tabcorp had more modest gains. The latter two stocks were both lower in morning trade.
The Information Technology and Healthcare sectors put on 2.8% and 1.5% on the back of 2.7% and 1.7% gains from heavyweights Computershare and CSL respectively.
Around the region, the Nikkei 225 lost 40.6 to 10,123.2, while the Straits Times Index shed 23.4 to 2,789.9. Meanwhile, the NZSE50 added 31.3 to 3,154.2. The Hang Seng shed 162.1 to 21,185.5.
Spot gold was trading at US$1,105.87 per ounce, and the Aussie was buying US$0.8885.
ANZ sees higher margins, lower provisions
ANZ chairman Charles Goode said the group would enjoy tailwinds from the recovering economies in Australia and New Zealand. At the group’s AGM today, he also flagged improved net interest margins and lower provisions for bad doubtful debts.
At the end of the day, ANZ shares were down 24c to $21.34.
Telstra revises revenue guidance downward
Telstra Corporation said it now expects sales revenue in FY10 to be “flattish” compared to the previous year. The telco said the major reasons for the lower than expected growth are the strength of the local currency, difficult operating conditions in Hong Kong, strong competition locally and an accelerated move to wireless-only homes.
At the bell, Telstra shares were trading down 12c to $3.43.
FGL says exchange rates hurting wine earnings
Foster’s Group said overall wine performance in the first half would be below the company’s expectations given the significant impact of exchange rate movements and US market conditions. The company said unfavourable exchange rate movements are expected to negatively impact first half wine earnings by between $80 to $90 million.
At the finish, Foster's shares were trading down 10c to $5.51.
GrainCorp to offload merchandise
GrainCorp said it has decided to exit the merchandise sector by the end of FY10 and sell a number of its merchandise service centres in the process. The company said the decision was made after consideration of the results of a review of GrainCorp’s participation in the merchandise sector.
By the close, GrainCorp shares were up 8c to $5.91.
Leighton completes $670m bond facility
Leighton Holdings announced that it has completed a $670 million Syndicated Performance Bond Facility with a consortium of Australian and International lenders. The company said the facility would be used to provide the performance bond obligations of the various Leighton Group operating companies as they take on and deliver construction projects.
At the end of the day, Leighton shares were down 27c to $36.74.
Passengers up 7.8% at Sydney Airport
Passengers passing through Sydney Airport increased 7.8% in November, from the previous corresponding period, according to MAp Group. Increases were also at Copenhagen, notably a 22% jump in domestic passengers there.
At the bell, MAp shares were up 6c to $2.92.
Asciano selected preferred operator
Asciano said it has been selected as the preferred rail operator to transport magnetite from Xstrata Copper’s Ernest Henry Mining operation in Queensland in a contract that is expected to generate revenue of approximately $400 million over a 10 year period. The company said its ports and bulk rail business has won a tender process that would see it enter into a take or pay contract with Xstrata Copper to haul a minimum of 1.2 million tonnes of magnetite commencing 1 February 2011 for 10 years.
At the finish, Asciano shares were up 9c to $1.77.
