Negative sentiment swept across the market throughout the afternoon with miners and energy stocks leading the market 1% lower. Every sector finished the day in the red.
At the end of the day, the All Ords was down 49.6 to 4,931.6, while the ASX/200 dropped 51.2 to 4,899.5. About 2.1 billion shares worth around $3.8 billion had changed hands.
The major players in the Materials and Resources sector weakened despite the base metals rising on the LME.
BHP Billiton slid 98c to $43.49 and Rio Tinto lost $1.63 to $78.37.
The sector fell 1.8%.
Alumina shares dropped 10c, or 4.9% to $1.96. The company’s AWAC joint venture partner Alcoa kicked off the quarterly reporting season this morning by reporting a loss of US$277 million following one off items of US$275 million. Alcoa said revenues were up 18% versus the previous corresponding period, while the company reported a loss from continuing operations of US$929 million a year ago.
Steelmakers Onesteel and Bluescope fell 2.7% and 3.6% to $3.54 and $3.18 respectively.
Gold futures hit their highest level in a month as Newcrest edged 46c higher to $37.28, while Lihir shed 4c to $3.42.
Home builders James Hardie and Fletcher Building were among the better performers, up 14c and 11c to $8.69 and $6.77.
Energy stocks were down 1.3%. Woodside, Coal & Allied and Oil Search all lost 1.3% each, while Origin was 1.5% below the line.
Uranium miner Paladin fell 3.6% to $4.25.
The Banks and Financials sector slipped 0.7%.
CBA, which had gained 35c to lunch, ended unchanged at $56.57. Westpac was also unchanged, while NAB was the worst performer, down 30c, or 1.1% to $26.95.
Macquarie Group was off 51c, or 1% at $48.39 as the investment bank, alongside Canadian Pension Plan Investment Board and the Abu Dhabi Investment Authority, made a bid for a large British power-distribution network.
Heavyweight insurer QBE lost 53c, or 2.1% to $24.45, while AXA Asia Pacific was the only insurer to make ground, adding just 4c to $6.68.
The Property Trusts sector was among the most heavily sold, shedding 1.4%.
Westfield and Stockland lost 1.7% and 2.2%.
The Industrials sector was 0.7% lower. Qantas was steady at $2.94 as the airline joined its oneworld partners in an attempt to keep the almost bankrupt Japan Airlines within the alliance.
On a positive note CSR shares jumped 8.5c, or 4.3% to $2.05 after China’s Bright Food Group offered to buy the company’s sugar and renewable energy unit for $1.5 billion. However, in response CSR said it was merely an expression of interest and the proposal was not capable of acceptance.
Auckland International Airport continued on from yesterday’s falls, dropping 3.7% to $1.55. Yesterday, the company announced it would pay about $132 million for a 24.55% stake in North Queensland Airports.
Other major stocks in the sector were down, with Leighton and Brambles retreating 1.8% to $40.51 and 1.4% to $7.08 respectively.
Consumer Staples weakened 0.6%. Sector heavyweight Wesfarmers eased 15c, or 0.5% lower to $31.40 and Woolworths lost 21c to $27.79.
It was an unsteady day among Consumer Discretionary stocks, which saw the sector 0.6% in the red by the close.
Retailer Pacific Brands and television network Ten lost 2.2% and 1.7% to $1.13 and $1.695.
GUD Holdings jumped nearly 6% to $9.47 in the last hour of trade after upgrading its guidance for the year.
Country Road surged 46c, or 14.2% to $3.70, though the clothing retailer didn’t release any information to the public.
The Health Care sector was also down 0.6%. CSL reversed morning gains to finish 4c lower at $31.89 and Sonic Healthcare dipped 40c to $14.68.
Pharmaxis rose 2.6% to $2.77 as the company announced it had signed an agreement to acquire Canadian based private biopharmaceutical company Topigen Pharmaceuticals.
Ramsay Health Care gained 25c, or 2.2% to $11.45 after UBS upgraded its rating on the stock to “buy”. Ramsay featured heavily in broker reports this morning.
Telstra dipped 4c to $3.31 as the Telecommunications sector fell 1.1%.
Around the region, the Nikkei 225 was up 95.5 to 10,893.8, while the Straits Times Index gained 0.6 to 2,934.1. Meanwhile, the NZSE50 lost 13.5 to 3,290.3.
Spot gold was trading at US$1,153.05 per ounce, and the Aussie was buying US$0.9277.
CSR says Bright Food merely expressed interestCSR said, in response to a media statement from Bright Food Group Co. Ltd, that the Chinese company had merely made an expression of interest and does not make any proposal capable of acceptance by CSR. The company said Bright Food had previously expressed an interest in CSR’s Sugar business however, its expression of interest similarly lacked certainty as to value, timing and likelihood of completion.
At the end of the day, CSR shares were up 8.5c to $2.05.
Pharmaxis to acquire Topigen Pharmaceuticals
Pharmaxis said it has signed an agreement to acquire Canadian based private biopharmaceutical company Topigen Pharmaceuticals Inc. The company said the transaction would enhance its respiratory drug development portfolio.
At the close, Pharmaxis shares were up 7c to $2.77.
Alcoa kicks off US season with revenue up 18%
Out of the US, 2010 economic results were heralded in by Alcoa, which reported quarterly earnings this morning. The US-based company, which has a 60-40 joint venture with Australia's Alumina, called World Alumina and Chemicals (AWAC), reported a loss of US$266 million, following unusual charges of US$275 million.
At the finish, Alumina shares were trading down 10c at $1.96 each.
Navitas enters US market
Navitas announced the execution of an educational affiliation agreement with Western Kentucky University for the establishment of a university pathway college at the university’s main campus. The company said the move into the US was a significant step in the global rollout of its business and academic models.
At the bell, Navitas shares were down 4c to $4.10.