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Shares tracked lower through the afternoon to eventually finish under the 4,500 barrier. While losses were widespread, Telstra once again showed strength following the weekend’s agreement on an $11 billion deal with the government for the NBN.

At the end of the day, the All Ords lost 71.9 to 4,509.4, while the ASX/200 fell 72.2 to 4,486.1. Around 1.9 billion shares worth around $4.5 billion had changed hands.

The Banks and Financials sector retreated 2.1%, with CBA dropping $1.33, or 2.5% to $51.21.

Westpac took the most points off the broader indices, down 3.3% to $22.56, while ANZ gave up 1.5% and NAB was down 1.6%.

Perpetual slid 50c to $29.90 as the diversified financial announced this morning that managing director, David Deverall, would step down from his position.

Investment bank Macquarie lost 3.1% to $42.67.

The five major insurers were between 1.1% and 1.7% in the red.

After outperforming the market yesterday, the Property Trusts sector was down 1.8%.

Looking at the two majors, Westfield dipped 1.5% to $12.68, while Stockland fell 12c, or 3% to $3.93 after UBS downgraded its’ rating on the stock to ‘sell’. 

The Materials and Resources sector was also weaker, down 1.5%.

BHP Billiton and Rio Tinto weakened 1.3% and 2.2% to $39.14 and $70.54, while mineral sands explorer Iluka fell 3.7% in a particularly disappointing day for the smaller to mid-capped stocks.

The sector had retreated 1% by midday after a mixed night for metals prices in London.

Investors found a safe haven in gold stocks despite the price of the precious metal only increasing 0.1% in New York.

Newcrest and Lihir added 0.8% and 0.5% to $35.38 and $4.33. The only other major company in the sector to make ground was Amcor, which rallied 8c to $6.47.

Energy stocks tracked the price of crude lower.

Woodside lost 65c, or 1.4% to $44.65. The third largest LNG producer in the world said industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

Santos and Oil Search shed 3% and 2.2% as the sector weakened 2.1%.

Their peers in the US and Europe were among the most heavily sold overnight.

Coal miner Whitehaven rallied 4c, or 0.8% to $5.08.

Leighton dipped 93c to $31.11 as the company rejected claims it could be forced to write off part of its' business in the Middle East.

Transport and logistics company Toll, Asciano and Qantas lost between 2.1% and 2.4%, while online jobs website Seek fell 2.9% to $7.44.

Seven Group edged 18c lower to $5.98. The company confirmed it has applied for $US250 million worth of shares in Agricultural Bank of China’s initial public offering.

The Industrials sector dropped 1.6%, while the Consumer Discretionary sector retreated 1.4%.

Surfwear retailer Billabong tumbled 3% to $8.78, while media company Newscorp dipped 34c to $17.66.

A day after ASIC revealed it was the most shorted stock on the market, Fairfax shares were down 2.5c to $1.41.

The defensive Consumer Staples sector retreated 0.2%, while Telecommunications was the only sector above the line, rising 1%.

Beverage maker Coca-Cola Amatil gained 0.9% to $11.73. Telstra put on 3c to $3.29.

Around the region, the Nikkei 225 retreated 180.6 to 9,932.3. The Straits times Index gave up 19.5 to 2,852.8 and the Hang Seng sank 84.4 to 20,734.7.

Spot gold was trading at US$1,238.70 per ounce, while the Aussie was buying US$0.8685.

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Seven now a cornerstone investor in AgBank of China
Seven Group Holdings has become a cornerstone investor in the initial public offering and listing of Agricultural Bank of China. Seven announced the signing of a Memorandum of Understanding (“MoU”) and an Investment Agreement with ABC, whereby Seven would invest $US250 million in China’s largest bank by retail customers.

At the end of the day, Seven shares were down 18c to $5.98.

Woodside Pluto LNG production slated for March 2011
Woodside Petroleum said that industrial action would not affect its plan to produce gas from the company’s Pluto LNG Project by March 2011. The company warned, however, that any ongoing industrial action could impact the project’s schedule and push out this production date.

At the bell, Woodside shares were down 65c to $44.65.

Perpetual MD to step down
Perpetual said this morning that managing director, David Deverall, would step down from his post. The diversified financial group said Mr Deverall would stay on as managing director until a replacement was found, or 31 March 2011, whichever came first.

At the close, Perpetual shares were trading down 50c at $29.90.

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