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A few days before a new financial year begins, Aussie shares drifted lower to be down around 0.4% by lunch. In very light trade losses were widespread, although relatively modest.

At midday, the All Ords lost 35.7 to 4,403.7, while the ASX/200 fell 33.8 to 4,379.2. Around 1.1 billion shares worth around $4.9 billion had changed hands.

BHP Billiton and Rio Tinto retreated 23c and 77c to $38.57 and $68.83 respectively.

Steel and iron ore stocks were also sold. Bluescope, Onesteel and metal recycler Sims Group retreated 1.4%, 2.5% and 3.1% respectively.

Fortescue Metal Group lost 7c, or 1.6% to $4.29.

Many smaller gold plays once again countered the broader decline among Materials and Resources stocks.

St Barbara rose 1.4%, while newcomer, Eldorado Gold tack on 2%.

However, Newcrest and Lihir, the two biggest gold miners, lost 6c and 3c to $35.94 and $4.41 respectively.

The sector retreated 0.8%.

Oil Search jumped 11c to $5.81, however the broader Energy sector also gave up 0.8% as several majors lost ground.

Woodside and Origin weakened 0.9% and 0.5% respectively.

Coal miner Whitehaven tumbled 20c to $4.82, while WorleyParsons jumped 45c to $22.25 after signing a deal with Brazilian mining giant Vale for engineering work on an iron project in that country.

The Banks and Financials sector lost 0.7%.

Among the big four banks, only CBA made ground, up 22c to $50.22 by lunch.

Macquarie retreated 70c, or 1.8% to $38.80.

Meanwhile, only QBE, up 10c to $18.45 made ground among the insurers.

The Property Trusts sector was 0.6% lower, with Westfield virtually flat, and Mirvac and Stockland 1.5% and 0.8% below the gain line.

The Consumer Staples sector lost 0.2%, despite Wesfarmers adding 20c, or 0.7% to $29.30.

Coca-Cola and Foster’s retreated 14c and 4c to $11.89 and $5.65 respectively.

Beleaguered rural services company, Elders was 5.5% higher at 38.5c. The company hit an all-time high of $28.30 on this day three years ago.

The Consumer Discretionary sector retreated 1.2%.

The retailers were weaker. Myer, David Jones and Harvey Norman sank 1.2%, 0.9% and 2% respectively.

The gamers and media stocks were led lower by Crown and Newscorp, which sank 1% and 2.4%.

The Industrials sector was down 1.5%. Brambles continues to suffer after losing a key US customer several weeks ago. Its shares fell 11c to $5.66.

Leighton shed 36c to $30.30, while MAp slumped 3.2% to $2.72.

CSR was flat, a positive result compared to its peers, as it continues to move towards spinning off its sugar division.  

Around the region, the Nikkei 225 fell 31.8 to 9,705.7, the Straits times Index gained 9.4 to 2,861.0 and the NZSE50 retreated 9.9 to 3,024.2.

Spot gold was trading at US$1,256.30 per ounce, while the Aussie was buying US$0.8760. 

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WorleyParsons secures Vale contract
Engineering firm WorleyParsons said that Brazilian mining giant Vale had awarded a “significant cost reimbursable” contract to a consortium of WorleyParsons and SNC-Lavalin for engineering and project management work at Vales’s multi-billion dollar S11D project in Brazil. WorleyParsons, in a statement to the Australian Stock Exchange, declined to put a figure on the expected value of the contract.

At midday, WorleyParsons shares were up 40c to $22.20.

Wattyl accepts Valspar offer
Wattyl has recommended shareholders accept The Valspar Corporation’s takeover bid, which values the Australian paint maker at approximately $142m. The US paint and coatings company offered shareholders $1.67 per share.

At lunch, Wattyl shares were trading up 35c to $1.61.

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Market Watch by egoli