Aussie shares follow Wall St lower
January 13, 2010
Aussie shares were trading lower Wednesday following a weak lead from Wall Street, where poor earnings from Alcoa sent the market lower. Mid-cap miners and energy stocks were the most heavily sold on lower base metal prices and the Alcoa result, while losses were capped by gains in the property and retail stocks.
In economic news, the Australian Bureau of Statistics said Australia’s GDP grew 0.2%, seasonally adjusted, in the September quarter.
At midday, the All Ords was down 29.7 to 4,901.9, while the ASX/200 shed 29.1 to 4,870.4. About 800 million shares worth around $1.6 billion had changed hands.
BHP Billiton shares were trading 32c, or 0.7% to $43.17. Rio Tinto lost 71c, or 0.9% to $77.66.
The broader Materials and Resources sector was down 1%.
Losses were widespread among the second-tier stocks. Alumina’s share price continued to be battered by Alcoa’s decline in the US, with the local joint venture partner down another 8.5c, or 4.3% to $1.875.
Local gold miners paced a decline in the price of gold overnight, with Newcrest down 73c, or 2% to $36.55. Lihir Gold lost 10c, or 2.9% to $3.32.
Most of the housing and construction material manufacturers were trading close to the gain line, though chemical manufacturers Orica and Incitec Pivot lost 1.9% and 3% to $25.41 and $3.59 respectively.
Fortescue lost 10c, or 1.9% to $5.10, though investors would still be happy with the 15% hike in the share price this year.
The Energy sector retreated 1.8%, despite the sectors largest stock, Woodside, holding ground.
The major loser was WorleyParsons, whose shares were $3 cheaper each at $26.35 after the oilfield engineering company downgraded its profit guidance by around 10% to between $280 million and $320 million thanks to softness in the US market.
Santos slumped 40c, or 2.8% to $14.02, while Whitehaven Coal, whose shares have risen 34% in the last two months, retreated 10c, or 1.8% to $5.36 per share.
Rio Tinto controlled ERA slumped 61c, or 2.7% after the uranium miner reported a 30% drop in oxide produced in the last quarter versus the same period in the prior year.
All of the big four banks were trading within 1% below the gain line and with gains elsewhere, including a 0.8% jump in the price of bourse operator ASX’s shares, the Banks and Financials dipped just 0.4%.
Among the insurers IAG was down 5c, or 1.2% to $4.00. QBE was the best performing insurer, though still down 0.2% to $24.41.
The Property Trusts outperformed much of the market, adding 0.7% to lunch.
Shares were led higher by Westfield, which rose 11c, or nearly 1% to $12.54. Mirvac advanced 2.5c, or 1.5% to $1.655. Stockland, the second largest property company in Australia, rallied 4c, or 1% to $3.97.
Elsewhere David Jones led the retailers higher, up 10c, or 2% to $5.12.
Wotif.com, JB Hi-Fi and Harvey Norman all posted similar percentage gains.
Despite this, the Consumer Discretionary still lost 0.2%, with Newscorp standing out among the declining stocks shedding 40c, or 2.3% to $17.34.
The Consumer Staples sector was just 0.1% higher. A gain of 25c, or 0.9% to $28.04 from Woolworths was countered by Wesfarmers trading 23c, or 0.7% lower at $31.17.
Industrials were mostly lower with the sector down 0.9%.
Downer EDI slumped 36c, or 3.9% to $8.91, while yesterday’s stand out performer CSR retreated 0.5% following yesterday’s expression of interest from a Chinese buyer for its sugar operations.
Leighton lost 41c, or 1% to $40.10, while Brambles eased 0.45 lower to $7.05.
Qantas shares were flat despite the financial woes facing its Japanese peer, whose shares plunged nearly 45% yesterday and a further massive 81% in early trade this morning.
Telstra added more than 2 points to the market, with a rise of 5c, or 1.5% to $3.36.
The broader Telecommunications sector climbed 1.5%.
The Utilities sector was also in favour with investors, rising 0.6%. Gains of 1.1% and 1.7% from AGL and SP Ausnet helped the sector.
Around the region, the Nikkei 225 was down 59.7 to 10,819.4. Meanwhile, the NZSE50 lost 10.8 to 3,279.5.
Spot gold was trading at US$1,129.80 per ounce, and the Aussie was buying US$0.9211.
WorleyParsons downgrades guidance
WorleyParsons shares opened 11.4% lower after the oilfield-engineering firm downgraded its FY10 profit guidance due to weakness in its US operations. The company advised that its current NPAT expectations for the year are in a range of $280m to $320m. The company advised that its current NPAT expectations for the year are in a range of $280 million to $320 million.
At midday, WorleyParsons shares were trading down $3.10 to $26.25.
ERA mining down over 20% in Q4
Energy Resources Australia this morning released it quarterly report for December last year, showing a 22% and 20% slump in the amount of material mined against Q4 2008 and Q3 2009 respectively. The uranium specialist attributed the decline to maintenance and safety work carried out on the south wall of the Ranger mine.
At lunch, ERA shares were trading down 59c to $22.32 per share.
Transurban quarterly toll revenue up 5.3%
Transurban Group reported a 5.3% increase in proportional toll revenue for the December quarter to $209.2m, compared to the previous corresponding period. The group said excluding the impact of the CityLink revenue protection provision was $206.6 million, an increase of 6.5% on the pcp.
At noon, Transurban shares were up 1c to $5.52.
Constellation Brands profit slumps 47%
US-based, ASX-listed beverage company Constellation Brands (CBR) posted a reported $44m net income for the third quarter 2010, down 47% from the previous corresponding period. Net sales for the company dipped 4% to just under US$1 billion for the quarter, with the slump in reported profit coming from the divesture of its value spirits business and a drop in operating income from international business.
At lunchtime, Constellation Brand securities were unchanged at $1.65.
Economics at Cazaly project look robust
Cazaly Resources said a Pre-Feasibility Study into the development of its Parker Range Iron Ore Project located in Western Australia indicates very robust economics for the project. The company said the project benefits from its close location to existing and accessible infrastructure, allowing it a relatively rapid development and ramp up to full production of 4 million tonnes per annum within 1.5 years.
At midday, Cazaly shares were up 6c to 33c.
Navitas signs two new US deals
Navitas said its has executed educational affiliation agreements with the University of Massachusetts Lowell and the University of Massachusetts Dartmouth. The global education services provider said the collaboration would provide undergraduate pathway and pre-masters programs at UMass Lowell and UMass Dartmouth in the United States.
At noon, Navitas shares were up 4c to $4.14.
In economic news, the Australian Bureau of Statistics said Australia’s GDP grew 0.2%, seasonally adjusted, in the September quarter.
At midday, the All Ords was down 29.7 to 4,901.9, while the ASX/200 shed 29.1 to 4,870.4. About 800 million shares worth around $1.6 billion had changed hands.
BHP Billiton shares were trading 32c, or 0.7% to $43.17. Rio Tinto lost 71c, or 0.9% to $77.66.
The broader Materials and Resources sector was down 1%.
Losses were widespread among the second-tier stocks. Alumina’s share price continued to be battered by Alcoa’s decline in the US, with the local joint venture partner down another 8.5c, or 4.3% to $1.875.
Local gold miners paced a decline in the price of gold overnight, with Newcrest down 73c, or 2% to $36.55. Lihir Gold lost 10c, or 2.9% to $3.32.
Most of the housing and construction material manufacturers were trading close to the gain line, though chemical manufacturers Orica and Incitec Pivot lost 1.9% and 3% to $25.41 and $3.59 respectively.
Fortescue lost 10c, or 1.9% to $5.10, though investors would still be happy with the 15% hike in the share price this year.
The Energy sector retreated 1.8%, despite the sectors largest stock, Woodside, holding ground.
The major loser was WorleyParsons, whose shares were $3 cheaper each at $26.35 after the oilfield engineering company downgraded its profit guidance by around 10% to between $280 million and $320 million thanks to softness in the US market.
Santos slumped 40c, or 2.8% to $14.02, while Whitehaven Coal, whose shares have risen 34% in the last two months, retreated 10c, or 1.8% to $5.36 per share.
Rio Tinto controlled ERA slumped 61c, or 2.7% after the uranium miner reported a 30% drop in oxide produced in the last quarter versus the same period in the prior year.
All of the big four banks were trading within 1% below the gain line and with gains elsewhere, including a 0.8% jump in the price of bourse operator ASX’s shares, the Banks and Financials dipped just 0.4%.
Among the insurers IAG was down 5c, or 1.2% to $4.00. QBE was the best performing insurer, though still down 0.2% to $24.41.
The Property Trusts outperformed much of the market, adding 0.7% to lunch.
Shares were led higher by Westfield, which rose 11c, or nearly 1% to $12.54. Mirvac advanced 2.5c, or 1.5% to $1.655. Stockland, the second largest property company in Australia, rallied 4c, or 1% to $3.97.
Elsewhere David Jones led the retailers higher, up 10c, or 2% to $5.12.
Wotif.com, JB Hi-Fi and Harvey Norman all posted similar percentage gains.
Despite this, the Consumer Discretionary still lost 0.2%, with Newscorp standing out among the declining stocks shedding 40c, or 2.3% to $17.34.
The Consumer Staples sector was just 0.1% higher. A gain of 25c, or 0.9% to $28.04 from Woolworths was countered by Wesfarmers trading 23c, or 0.7% lower at $31.17.
Industrials were mostly lower with the sector down 0.9%.
Downer EDI slumped 36c, or 3.9% to $8.91, while yesterday’s stand out performer CSR retreated 0.5% following yesterday’s expression of interest from a Chinese buyer for its sugar operations.
Leighton lost 41c, or 1% to $40.10, while Brambles eased 0.45 lower to $7.05.
Qantas shares were flat despite the financial woes facing its Japanese peer, whose shares plunged nearly 45% yesterday and a further massive 81% in early trade this morning.
Telstra added more than 2 points to the market, with a rise of 5c, or 1.5% to $3.36.
The broader Telecommunications sector climbed 1.5%.
The Utilities sector was also in favour with investors, rising 0.6%. Gains of 1.1% and 1.7% from AGL and SP Ausnet helped the sector.
Around the region, the Nikkei 225 was down 59.7 to 10,819.4. Meanwhile, the NZSE50 lost 10.8 to 3,279.5.
Spot gold was trading at US$1,129.80 per ounce, and the Aussie was buying US$0.9211.
WorleyParsons downgrades guidance
WorleyParsons shares opened 11.4% lower after the oilfield-engineering firm downgraded its FY10 profit guidance due to weakness in its US operations. The company advised that its current NPAT expectations for the year are in a range of $280m to $320m. The company advised that its current NPAT expectations for the year are in a range of $280 million to $320 million.
At midday, WorleyParsons shares were trading down $3.10 to $26.25.
ERA mining down over 20% in Q4
Energy Resources Australia this morning released it quarterly report for December last year, showing a 22% and 20% slump in the amount of material mined against Q4 2008 and Q3 2009 respectively. The uranium specialist attributed the decline to maintenance and safety work carried out on the south wall of the Ranger mine.
At lunch, ERA shares were trading down 59c to $22.32 per share.
Transurban quarterly toll revenue up 5.3%
Transurban Group reported a 5.3% increase in proportional toll revenue for the December quarter to $209.2m, compared to the previous corresponding period. The group said excluding the impact of the CityLink revenue protection provision was $206.6 million, an increase of 6.5% on the pcp.
At noon, Transurban shares were up 1c to $5.52.
Constellation Brands profit slumps 47%
US-based, ASX-listed beverage company Constellation Brands (CBR) posted a reported $44m net income for the third quarter 2010, down 47% from the previous corresponding period. Net sales for the company dipped 4% to just under US$1 billion for the quarter, with the slump in reported profit coming from the divesture of its value spirits business and a drop in operating income from international business.
At lunchtime, Constellation Brand securities were unchanged at $1.65.
Economics at Cazaly project look robust
Cazaly Resources said a Pre-Feasibility Study into the development of its Parker Range Iron Ore Project located in Western Australia indicates very robust economics for the project. The company said the project benefits from its close location to existing and accessible infrastructure, allowing it a relatively rapid development and ramp up to full production of 4 million tonnes per annum within 1.5 years.
At midday, Cazaly shares were up 6c to 33c.
Navitas signs two new US deals
Navitas said its has executed educational affiliation agreements with the University of Massachusetts Lowell and the University of Massachusetts Dartmouth. The global education services provider said the collaboration would provide undergraduate pathway and pre-masters programs at UMass Lowell and UMass Dartmouth in the United States.
At noon, Navitas shares were up 4c to $4.14.
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