Heavyweights lead Aussie market lower
February 4, 2010
Local shares snapped two days of gains with the market down 0.7% Thursday. Resources led the slide, while the banks continued to struggle in the wake of Tuesday’s announcement that interest rates would remain unchanged.
In retail news, according to an Australian Bureau of Statistics report retail sales increased 1.1% in the December quarter, however dipped 0.7% in the month of December. While the quarterly rise was in line with expectations, forecasts were for a growth of 0.2% in December.
At the close of trade, the All Ords was down 29.1 to 4,644.1, while the ASX/200 lost 26.3 to 4,621.6. About 2.4 billion shares worth around $5 billion had changed hands.
The Materials and Resources sector lost 1.5% following a weak lead in from overseas commodity markets.
Newcrest fell 48c, or around half of lunchtime losses to close at $31.97 after gold futures fell on caution ahead of the release of US jobs data on Friday.
Gold and copper producer OZ Minerals slumped 5.5% to $1.04, while building materials company James Hardie wiped off most of yesterday’s strong rally to be 2.4% lower at $7.77.
The latter’s share price wasn’t helped by the ABS releasing figures showing the seasonally adjusted estimate for total dwelling units approved rose 2.2% in December.
Market heavyweights BHP Billiton lost 51c to $40.99 and Rio Tinto fell $1.88, or 2.6% to $70.12.
Meanwhile, Fortescue was down 21c, or 4.2% to $4.77.
Botswana Metals Limited shares soared over 320% after the African focused miner said it had found high grades of copper near a nickel mine it has already established.
Energy stocks closed up 0.3%.
Karoon Gas sank 75c, or 11.3% to $5.91 after announcing plans to plug and abandon a well at Montara reservoir. The company’s shares hit lows of $4.51 and highs of $6.35 in what was a highly volatile day for the stock.
Woodside slid 40c, or 0.9% to $43.20, while Santos surged 4% to $13.76 after the CEO of the gas producer said it was in advanced talks to sell Gladstone LNG to Asian customers.
The Reserve Bank’s decision to retain the cash rate continued to have a negative impact on the big four banks.
Westpac was down 34c to $23.13 and ANZ shed 35c to $21.42.
Insurer QBE was 1.4% lower to be trading at $22.78 as the Banks and Financials sector weakened 0.7%.
Dexus added 1.5c to 85.5c and Mirvac was unchanged as reports surfaced that the two property trusts may make separate bids for Westpac Office Trust’s assets.
The Property Trust sector edged 0.4% into the black.
It was a relatively mixed day for Industrials, however losses among the majors outweighed gains seen elsewhere as the sector fell 0.6%.
CSR slumped 6.5% to $1.725 after coming out of a trading halt after the Federal Court blocked the conglomerate’s plan demerge its sugar business yesterday. UBS downgraded its rating on the stock to ‘neutral’ as a result.
Leighton dropped 58c, or 1.5% to $38.80 and Brambles eked out a 2c gain to $6.76.
Asciano gained 1.1% to $1.77 as it was awarded a $250m haulage contract from Macarthur Coal, while Downer EDI rose 2.2% to $8.28 after securing $750m in new contract across its rail, resources, energy and infrastructure divisions.
Bathroom appliance supplier Reece shares edged just 0.2% high to $24.60 despite saying profits would be 15% higher than last year thanks to cost cutting.
The Consumer Discretionary sector weakened 1.1%.
Tabcorp recovered from morning losses to be flat after announcing that a poor performance from its Queensland casinos resulted in a 2% drop in net profit for the six months to 31 December 2009.
Crown and Aristocrat shed 1.9% and 2.2% to $7.85 and $4.40.
Retailers dropped off after the release of the national retail figures. David Jones slid 20c to $4.73, while online accommodation bookings provider Wotif.com slumped 4.8% to $6.52.
Myer fell 3.9% to $3.25 after reporting soft sales figures over Christmas.
Coca-Cola Amatil dipped 1c to $10.90. The beverage maker said yesterday that an increase in costs had forced it to increase prices by 5%.
Foster’s countered as it rallied 2.4% to be trading at $5.55.
The Consumer Staples sector was up 0.8% as sector majors Wesfarmers and Woolworths made modest gains.
Telecommunications outperformed to be 1.4% higher on the back of a 5c rise to $3.42 from Telstra.
Biota was a highlight among Healthcare stocks having jumped 2.9% to $2.12 as it awaits the release of GlaxoSmithKline’s quarterly report, which is due tonight. Analysts are predicting Biota may receive record quarterly royalties of between $30m - $35m.
Around the region, the Nikkei 225 lost 90.5 to 10,313.8, while the Straits Times Index dipped 19.9 to 2,744.9. Meanwhile, the NZSE50 added 13.8 to 3,148.9. The Hang Seng shed 320.2 to 20,401.8.
Spot gold was trading at US$1,109.97 per ounce, and the Aussie was buying US$0.8814.
ARB expects $21m first-half profit
ARB Corporation said it finished an already strong first half of the year with record sales being achieved in both November and December 2009. As a result, the four-wheel drive accessories manufacturer and distributor advised that, based on unaudited management accounts, sales revenue has increased by 15.5% and net profit before tax is expected to be approximately $21 million for the six-month period.
At the close, ARB shares were up 16c to $5.16.
Downer secures $750m in new contracts
Downer EDI said it has secured more than $750 million in new contract across its rail, resources, energy and infrastructure divisions. Managing director and CEO Geoff Knox said the contracts added to a work-in-hand balance of over $16 billion.
At the end of the day, Downer shares were up 18c to $8.28.
Karoon shares slump on well results
Last night Karoon Gas confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.
At the bell, Karoon shares had slumped 75c to $5.91.
Myer sales climb 2% in 1HFY10
Myer Holdings reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.
At the finish, Myer shares were trading down 13c to $3.25.
Asciano awarded $250m haulage contract
Asciano announced that it has executed a long term, take-or-pay contract with Macarthur Coal for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. Asciano said the agreement would generate revenues of approximately $250 million for the company.
At the close, Asciano shares were trading up 2c to $1.77, while Macarthur Coal shares were up 9c to $10.09.
Tabcorp results steady, outlook uncertain
Tabcorp Holdings said its net profit for the six months to 31 December 2009 fell 2% to $257.9 million on the back of a poor performance from its Queensland casinos after the government in that state slugged the company with extra taxes, while new race fields charges also took a bite out of earnings.
At the end of the session, Tabcorp shares were unchanged at$7.05.
In retail news, according to an Australian Bureau of Statistics report retail sales increased 1.1% in the December quarter, however dipped 0.7% in the month of December. While the quarterly rise was in line with expectations, forecasts were for a growth of 0.2% in December.
At the close of trade, the All Ords was down 29.1 to 4,644.1, while the ASX/200 lost 26.3 to 4,621.6. About 2.4 billion shares worth around $5 billion had changed hands.
The Materials and Resources sector lost 1.5% following a weak lead in from overseas commodity markets.
Newcrest fell 48c, or around half of lunchtime losses to close at $31.97 after gold futures fell on caution ahead of the release of US jobs data on Friday.
Gold and copper producer OZ Minerals slumped 5.5% to $1.04, while building materials company James Hardie wiped off most of yesterday’s strong rally to be 2.4% lower at $7.77.
The latter’s share price wasn’t helped by the ABS releasing figures showing the seasonally adjusted estimate for total dwelling units approved rose 2.2% in December.
Market heavyweights BHP Billiton lost 51c to $40.99 and Rio Tinto fell $1.88, or 2.6% to $70.12.
Meanwhile, Fortescue was down 21c, or 4.2% to $4.77.
Botswana Metals Limited shares soared over 320% after the African focused miner said it had found high grades of copper near a nickel mine it has already established.
Energy stocks closed up 0.3%.
Karoon Gas sank 75c, or 11.3% to $5.91 after announcing plans to plug and abandon a well at Montara reservoir. The company’s shares hit lows of $4.51 and highs of $6.35 in what was a highly volatile day for the stock.
Woodside slid 40c, or 0.9% to $43.20, while Santos surged 4% to $13.76 after the CEO of the gas producer said it was in advanced talks to sell Gladstone LNG to Asian customers.
The Reserve Bank’s decision to retain the cash rate continued to have a negative impact on the big four banks.
Westpac was down 34c to $23.13 and ANZ shed 35c to $21.42.
Insurer QBE was 1.4% lower to be trading at $22.78 as the Banks and Financials sector weakened 0.7%.
Dexus added 1.5c to 85.5c and Mirvac was unchanged as reports surfaced that the two property trusts may make separate bids for Westpac Office Trust’s assets.
The Property Trust sector edged 0.4% into the black.
It was a relatively mixed day for Industrials, however losses among the majors outweighed gains seen elsewhere as the sector fell 0.6%.
CSR slumped 6.5% to $1.725 after coming out of a trading halt after the Federal Court blocked the conglomerate’s plan demerge its sugar business yesterday. UBS downgraded its rating on the stock to ‘neutral’ as a result.
Leighton dropped 58c, or 1.5% to $38.80 and Brambles eked out a 2c gain to $6.76.
Asciano gained 1.1% to $1.77 as it was awarded a $250m haulage contract from Macarthur Coal, while Downer EDI rose 2.2% to $8.28 after securing $750m in new contract across its rail, resources, energy and infrastructure divisions.
Bathroom appliance supplier Reece shares edged just 0.2% high to $24.60 despite saying profits would be 15% higher than last year thanks to cost cutting.
The Consumer Discretionary sector weakened 1.1%.
Tabcorp recovered from morning losses to be flat after announcing that a poor performance from its Queensland casinos resulted in a 2% drop in net profit for the six months to 31 December 2009.
Crown and Aristocrat shed 1.9% and 2.2% to $7.85 and $4.40.
Retailers dropped off after the release of the national retail figures. David Jones slid 20c to $4.73, while online accommodation bookings provider Wotif.com slumped 4.8% to $6.52.
Myer fell 3.9% to $3.25 after reporting soft sales figures over Christmas.
Coca-Cola Amatil dipped 1c to $10.90. The beverage maker said yesterday that an increase in costs had forced it to increase prices by 5%.
Foster’s countered as it rallied 2.4% to be trading at $5.55.
The Consumer Staples sector was up 0.8% as sector majors Wesfarmers and Woolworths made modest gains.
Telecommunications outperformed to be 1.4% higher on the back of a 5c rise to $3.42 from Telstra.
Biota was a highlight among Healthcare stocks having jumped 2.9% to $2.12 as it awaits the release of GlaxoSmithKline’s quarterly report, which is due tonight. Analysts are predicting Biota may receive record quarterly royalties of between $30m - $35m.
Around the region, the Nikkei 225 lost 90.5 to 10,313.8, while the Straits Times Index dipped 19.9 to 2,744.9. Meanwhile, the NZSE50 added 13.8 to 3,148.9. The Hang Seng shed 320.2 to 20,401.8.
Spot gold was trading at US$1,109.97 per ounce, and the Aussie was buying US$0.8814.
ARB expects $21m first-half profit
ARB Corporation said it finished an already strong first half of the year with record sales being achieved in both November and December 2009. As a result, the four-wheel drive accessories manufacturer and distributor advised that, based on unaudited management accounts, sales revenue has increased by 15.5% and net profit before tax is expected to be approximately $21 million for the six-month period.
At the close, ARB shares were up 16c to $5.16.
Downer secures $750m in new contracts
Downer EDI said it has secured more than $750 million in new contract across its rail, resources, energy and infrastructure divisions. Managing director and CEO Geoff Knox said the contracts added to a work-in-hand balance of over $16 billion.
At the end of the day, Downer shares were up 18c to $8.28.
Karoon shares slump on well results
Last night Karoon Gas confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.
At the bell, Karoon shares had slumped 75c to $5.91.
Myer sales climb 2% in 1HFY10
Myer Holdings reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.
At the finish, Myer shares were trading down 13c to $3.25.
Asciano awarded $250m haulage contract
Asciano announced that it has executed a long term, take-or-pay contract with Macarthur Coal for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. Asciano said the agreement would generate revenues of approximately $250 million for the company.
At the close, Asciano shares were trading up 2c to $1.77, while Macarthur Coal shares were up 9c to $10.09.
Tabcorp results steady, outlook uncertain
Tabcorp Holdings said its net profit for the six months to 31 December 2009 fell 2% to $257.9 million on the back of a poor performance from its Queensland casinos after the government in that state slugged the company with extra taxes, while new race fields charges also took a bite out of earnings.
At the end of the session, Tabcorp shares were unchanged at$7.05.
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