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The stock market recorded one of its worst days in recent months, as Myer became a listed company. A negative lead from Wall Street saw the ASX/200 slump 2.2%, while Myer has set its investors back more 8.5% on its first day, closing at $3.75.

Investors also locked in profits ahead of the Reserve Bank’s interest rate decision tomorrow, where rates are widely expected to rise around 25 basis points.

The government offered a more upbeat outlook on the economy with Treasurer Wayne Swan saying the economy was expected to grow by 1.5% in 2009/10 against a decline of 0.5% forecast only six months ago.

Meanwhile, unemployment was now forecast to hit a maximum of 6.75% in the current financial year against the 8.5% in 2010/11 previously forecast.

In other economic news, the Australian Industry Group/PricewaterhouseCoopers Australian Performance of Manufacturing Index dipped by a seasonally adjusted 0.3 point in October to 51.7. It was the third consecutive month above the 50 point level that separates expansion from contraction.

By the close, the All Ords had fallen 100.6 to 4,546.3, while the ASX/200 lost 102.8 to 4,540.4. Over 2.4 billion shares worth around $4.7 billion had changed hands.

Materials and Resources shed 2%.

Rio Tinto dropped 99c, or 1.6% to $62.79 and BHP Billiton shed 74c, or 2% to $36.71

Gold miner Newcrest slid 18c to $32.12, while Lihir was off 1c to $3.04 following a broker upgrade.

Orica slumped $1.31 to $22.69. 

Metal recycler Sims Metal Management bucked the trend with a 61c gain to $20.43 following two broker upgrades.

The Energy sector weakened 0.9% as the price of crude fell more than 3% to $77 a barrel.  It was revealed this morning that Origin has entered an agreement with sector heavyweight Woodside that will see Origin acquire Woodside’s 51.55% interest in the Otway Gas Project for $712.5 million.

Origin shares were down 11c to $15.96, while Woodside shares gained strongly in afternoon trade to close 54c in the black at $48.24.

A broker upgrade from UBS couldn’t stop Arrow Energy from weakening 2.4% to $4.01.

Uranium miner Paladin dropped 17c to $3.99, while Aquila rallied 32c or 4.5% to $7.50 after the Foreign Investment Review Board approved China’s Baosteel’s proposed $285 million investment in the coal and iron ore explorer.

Banks and Financials shed 2.5%. Of the big four NAB lost the most ground with a 90c, or 3.2% drop to $28.90.

Westpac was 78c lower at $25.59.

Investment bank Macquarie Group fell $2.45, or 4.9% to $47.55. The bank featured heavily in broker reports out this morning

Suncorp-Metway was the worst performer among the insurers, shedding 44c to $8.42. QBE lost 62c, or 2.7% to 22.15.

Stockland added 1c to $3.76 following a broker upgrade. The company also announced the appointment of ex-Colonial First State CFO, Tim Foster, as the new chief financial officer.

The Property Trust sector fell 0.5% with Westfield 7c higher at $12.34.

Consumer Staples dipped 2% with Wesfarmers down 89c, or 3.2% to $27.20.

Coca-Cola Amatil dipped 2.5% to $10.37 as the beverage maker’s managing director Terry Davis’s entered into a new employment agreement.

AAco was unchanged at $1.455 despite downgrading its guidance for the six months to the end of December. The beef cattle producer also appointed David Farley as the new managing director and CEO.

Falls of over 3% from a number of influential Consumer Discretionary stocks sent the sector 2.5% lower.

Retailers Billabong and Harvey Norman dropped 3.4% and 2.3% to $10.05 and $3.90 respectively.

Myer initially listed at $4.10 at midday and was down to $3.88 soon after before settling lower at $3.75.

Gamer Aristocrat fell 15c, or 3.3% to $4.37 and Fairfax dropped 6c to $1.55.

Industrials lost 3.2% with Leightons $1.65 cheaper at $34.35.

A number of other larger capped stocks in the sector remained more than 3% in the red throughout the day.

An 8c drop to $3.24 from Telstra sent the Telecommunications sector down by 2.2%.

Around the region, the Nikkei 225 shed 231.6 to 9,803.2, while the Straits Times Index weakened 8.3 to 2,642.8. Across the Tasman, the NZSE50 fell 31.9 to 3,183.7. The Hang Seng lost 374.7 to 21,378.2

Spot gold was trading at US$1044.70 per ounce, and the Aussie was buying US$0.9034. 

 

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MAp Sydney EBITDA up 6.6% in 3Q
Map Group reported a 6.6% jump in EBITDA for the third quarter of 2009 of $171 million, from the previous corresponding period. In a report released on Friday, the company said positive growth from Sydney airport offset a decline in EBITDA from MAp’s European operations.

At the end of the day, MAp shares were down 15c to $2.72.

Origin to buy Woodside's Otway stake
Origin Energy said it has entered an agreement to acquire Woodside Energy Limited’s (WPL) 51.55% interest in the Otway Gas Project for $712.5 million. Origin said the transaction includes production licenses, which contain the Thylacine and Geographe fields, and all of Woodside’s Otway Basin offshore and onshore facilities and permits.

At the close, Origin shares were down 11c to $15.96, while Woodside shares were up 54c to $48.24.

AAco downgrades guidance, appoints CEO
Australian Agricultural Company downgraded its guidance for the second half of the financial year ending 31 December 2009 due to the strengthening Australian / US dollar position. The beef cattle producer also announced the appointment of David Farley as managing director and chief executive officer.

At the end of the day, AAco shares were trading unchanged at $1.455. 

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