Markets ends week lower
Local shares lost around 1.3% by the close Friday, finishing the week 0.9% below what it opened on Monday. Financials lost the most ground as every sector fell below the line.
At the end of the day, the All Ords lost 61.1 to 4,706.7, while the ASX/200 shed 63.4 to 4,685.8. About 2.4 billion shares worth around $4.1 billion had changed hands.
Banks and Financials struggled, resulting in a 1.5% fall for the sector. The big four were all more than 1.2% below the line, with ANZ and Westpac down 2.2% and 1.9% to $21.75 and $24.20.
Macquarie fell 93c, or 1.9% to $48.01.
Insurer IAG dropped 29c, or 6.9% to $3.92, while QBE added 9c to $22.64. QBE chief financial officer Neil Drabsch said that the company would not revisit a takeover offer for IAG that was originally floated back in April 2008.
A 34c, or 2.7% drop to $12.35 from sector heavyweight Westfield led Property Trusts 2.1% into negative territory.
GPT Group shed 2.5c to 63.5c.
A fall in metals prices on the LME sent resource stocks tumbling across the world. The price of copper fell 1.3%.
BHP Billiton lost 82c, or 2% to $40.03 and Rio Tinto fell $1.38, or 1.9% to $71.22.
Fortescue dropped 8c to $4.22 after the nation’s third largest iron ore producer said it would not fund another railway line in the Pilbara and that third parties would be allowed access to BHP and Rio’s rail tracks.
The Materials and Resources sector lost 1.4%.
Sims Metal was halted after announcing it would tap the market for up to $475m. The metal recycler also reaffirmed guidance.
The gold stocks were flat despite a modest rise in the price of the precious metal overnight. Newcrest gave up 17c to $35.84 and Lihir was up 2c to $3.58.
The Energy sector weakened 1.1% with most stocks trading just below the gain line. Crude futures dropped 2.7% overnight.
Woodside was the exception, losing $1.41 to $48.69 as the company revealed the cost of its Pluto project around $1 billion more than originally forecast two years ago.
Origin retreated 6c to $16.00.
Industrials struggled, with the majors leading the sector 1.7% lower.
Brambles lost 24c, or 3.6% to $6.52 after featuring heavily in broker reports this morning.
Citigroup upgraded its rating on the stock to “hold”, while UBS cut its target price by close to 5%.
Leighton fell 2.4% to $36.31 and Downer EDI dropped 2.6% to $8.64.
Goodman Fielder weakened 1.3% to $1.535 ahead of an expected sale of its commercial oils and fats business for less than book value.
MAP Group slid 4c to $2.77. Passengers at its Sydney Airport jumped 6.1% in October from a year ago led by a surge in visitors from North America.
The Consumer Discretionary sector shed 1.6%, with retailers and gamers taking the most points off the index.
David Jones and Harvey Norman fell 8c and 11c to $5.65 and $4.24 respectively.
Aristocrat sank 30c, or 6.6% to $4.26, while Crown weakened 11c to $8.13.
Reports have surfaced that Tabcorp is in discussions to acquire Wesfarmers’ pub business as part of a diversification strategy. Tabcorp’s shares were 2% lower at $7.18.
Wesfarmers edged 6c above the line to $29.25 as the Consumer Staples sector dipped 0.6%.
Woolworths lost 30c to $28.00.
Telstra dipped 1c to $3.30, while the broader Telecommunications sector gave up 0.4%.
Around the region, the Nikkei 225 lost 81.2 to 9,468.3, while the Straits Times Index edged 7.6 higher to 2,766.4. Across the Tasman, the NZSE50 shed 27.5 to 3,113.6. The Hang Seng lost 121.6 to 22,521.6
Spot gold was trading at US$1,144.40 per ounce, and the Aussie was buying US$0.92.
North American arrivals surge
Traffic at Sydney Airport increased 6.1% in the month of October from the previous corresponding period, however the European peers in MAP Group's portfolio reported a decline in traffic proving that the economic recovery in Europe still has a long way to go.
At the close, Macquarie Airports shares were down 4c to $2.77.
MMG US subsidiary enters forbearance agreement
Macquarie Media said its American Consolidated Media LLC (“ACM”) subsidiary has entered into a forbearance agreement with its lenders. Late last month MMG announced that ACM had breached certain covenants under its US$133.7m business level bank facility.
At the end of the day, Macquarie Media shares were down 1c to $2.10.
Arrow to focus on Fishermans Landing
Arrow Energy said, in regards to its FY10 outlook, it would focus its efforts on an enhanced exploration and appraisal program and the targeted FID on the Fisherman’s Landing project in March 2010. The company added that it expected continued increases in gas production and electricity sales during the year.
At the finish, Arrow Energy shares were down 17c to $4.05.
Sims to tap market for $475m
Sims Metal Management announced a proposal to raise about $400 million in capital via a fully underwritten placement. The metal recycler also said it planned to raise $75 million through a share purchase plan (“SPP”).
Sims Metal Management shares were halted at $22.20.
Adelaide Brighton reaffirms guidance
Adelaide Brighton said, at this morning’s AGM, that net profit after tax guidance for the year ended 31 December 2009 would be in the range of $105 million to $115 million, in line with previous forecasts. The cement maker reported a net profit for the previous corresponding period of $120.8 million.
At the bell, Adelaide Brighton shares were down 4c to $2.64.
Leave a Reply