Market slides on China fears
In economic news the resilience of the Australian economy was reinforced with new figures from the Australian Bureau of Statistics showing new car sales, seasonally adjusted, climbed 3.3% to 89,741 cars in December. This figure is more than 17% higher than the previous December.
At midday, the All Ords was down 27.1 to 4,868, while the ASX/200 lost 20.4 to 4,847.8. About 1.3 billion shares worth around $2.4 billion had changed hands.
Losses were widespread among the miners, led by BHP Billiton, which lost 59c to $42.82. Rio Tinto slumped $1.66 to $76.38. Despite the sell-off on these stocks losses were more muted than their London listings which sank 3.6% and 4.3% respectively.
The Materials and Resources sector lost 1.5%. One notable exception was OZ Minerals, which added 2.2% to $1.175 as it said annual production of gold and copper from its Prominent Hill mine exceeded expectations.
Macarthur Coal was among a raft of coal miners that were heavily sold Thursday, its shares tumbled 46c, or 4.2% to $10.53.
Newcrest and Lihir paced the decline in the price of gold in New York, shedding 2.8% and 2.4% respectively.
Alumina has lost 6.5c to $1.74. The aluminium producer has lost nearly 16% of its value in the last 10 days.
The Energy sector was down 1.6%. Losses were broad with Origin the only significant stock to make ground. Its shares were up 9c, or 0.5% to $16.85.
Woodside Petroleum gave up 51c, or 1.1% to $45.99.
Whitehaven Coal continued its horror run, down 24c, or 4.7% to $4.89.
Uranium specialists Extract Resources and Rio Tinto controlled Energy Resources were down 4.2% and 3.7% respectively.
Santos, which announced a 21% slump in sales last year, was down 21c, or 1.5% to $13.42.
The Banks and Financials sector gained 0.2% on strength shown from the two largest banks in the country.
Westpac and CBA added 25c and 64c to $25.73 and $57.20.
AMP jumped 19c, or 3% to $6.62. AXA Asia Pacific retreated just 1c, despite its directors suggesting its post-tax profit, at around $675 million, would beat expectations.
Macquarie climbed another 76c, or 1.4% to $53.45 after the second day of bullish comments from brokers.
The Property Trust sector came off opening lows, with Westfield down just 7c, to $12.51 at lunch.
Mirvac slumped 5.5c, or 3.5% to $1.495 as the sector retreated 1% overall.
Woolworths and Wesfarmers were either side of the gain line though the Consumer Staples sector was down 0.4% at lunch.
Graincorp slumped 27c, or 4.4% to $5.87 after the grain handler announced the resignation of its CEO.
Among the Consumer Discretionary sector, which fell 0.5%, media stocks were soft. Fairfax gave up 2.5c, or 1.3% to $1.845, while West Australian News retreated 17c, or 2.1% to $7.76.
Retailers were softer with David Jones and Myer losing 1.4% and 0.9% respectively.
Qantas added 3.4% to be just above $3.00 per share for the first time since October to make it the standout performer among the Industrial stocks.
Macquarie Infrastructure Group was off 0.3% despite reporting an increase in revenue in the December quarter.
The broader sector retreated 0.2%, despite Leighton and Brambles adding 47c and 13c to $39.19 and $6.90 respectively.
Transpacific Industries was flat despite predicting a drop in first half earnings.
Telstra defied the gloom on the stockmarket, surging 8c, or 2.4% to $3.43. The Telecommunications sector put on 1.7%.
The Healthcare sector rose 0.1% on the growing expectations the Obama administration would be unable to pass a sweeping healthcare reform.
Vaccine producer CSL dipped 4c, or 0.1% to $31.17 per share. Sonic Healthcare added 33c, or 2.3% to $14.53.
Around the region, the Nikkei 225 dipped 1.1 to 10,736.4, while the Straits Times Index edged 7.6 lower to 2,885.5. Meanwhile, the NZSE50 shed 9.6 to 3,217.6.
Spot gold was trading at US$1,114.73 per ounce, and the Aussie was buying US$0.9125.
AXA says profit will exceed expectations
AXA Asia Pacific said it was expecting full-year post-tax profit to 31 December 2009 to come in at around $675m, beating analysts’ current forecasts for the insurer. The final figure includes $57 million in non-recurring items, including the profit on the sale of its 50% stake in AXA Asia Pacific’s Indian interests and the resolution of a 17-year-old tax dispute.
At noon, AXA shares were unchanged at $6.60.
OZ Minerals production exceeds expectations
OZ Minerals this morning reported copper production of 96,310 tonnes for the year to 31 December, ahead of the previously expected 90,000 tonnes, while gold production of 75,500 ounces was also ahead of expectations of between 60,000 and 70,000. Meanwhile the company said it had in excess of $1 billion in the bank following its sell-off of assets last year as it sought to avoid bankruptcy.
At lunch, OZ Minerals shares were up 3c to $1.18.
Santos full year revenue drops 21%
Santos said CY09 production of 54.4 million barrels of oil equivalent was within the company’s guidance range of 53 to 56 mmboe and in line with the previous corresponding period. However, the company said sales revenue of $2,181 million for the same period was 21% lower than 2008 primarily due to lower international oil prices.
At midday, Santos shares were down 22c to $13.41.
MIG sees modest revenue growth
Macquarie Infrastructure Group reported a jump in revenue growth for the December quarter across its toll-road portfolio. The announcement was made ahead of the tomorrow’s shareholder meeting to vote on the previously proposed splitting of the company and demerging from Macquarie Group.
At lunchtime, Macquarie Infrastructure shares were unchanged at $1.495.
Transpacific predicts 1H earnings drop
Transpacific Industries Group forecast first half FY10 operating EBITDA result between $197m and $200m and operating EBIT between $115m and $118m. The provider of integrated total waste management solutions said this result is above the 2H FY09 operating EBITDA of $191.9m, but below the 1H FY09 operating EBITDA of $255.7m.
At noon, Transpacific Industries shares were unchanged at $1.385.
Origin JV begins commissioning of 2nd stage
The joint venture between Origin Energy and ConocoPhillips, known as Australia Pacific LNG, announced it had commenced commissioning of the second, high-pressure stage of its Talinga coal seam gas development in Queensland. The JV started-up the low pressure stage one in November last year.
At lunch, Origin shares were up 4c to $16.80.
Graincorp CEO resigns
GrainCorp became the second high-profile company, after Lihir Gold, to lose its CEO in less than a week after announcing the immediate resignation Mark Irwin, who was also the company’s managing director. The company said Mr Irwin would walk out the door with $750,000 in cash and share rights.
At midday, Graincorp shares were down 26c to $5.88.
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