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Aussie stocks retreated Thursday morning after equity and commodity markets lost ground across the globe overnight. Resources led the slide, while the local currency 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 noon, the All Ords was down 40.5 to 4,632.7, while the ASX/200 lost 40.2 to 4,607.7. About 1 billion shares worth around $1.8 billion had changed hands.

The Materials and Resources sector had lost 0.7% by midday after metals prices on the LME retreated due to a strengthening greenback. The price of copper slid 3.3%, while nickel dropped 4.6%.

Newcrest fell $1.00, or 3.1% to $31.45 after gold futures fell on caution ahead of the release of US jobs data on Friday.

Gold and copper producer OZ Minerals slumped 4.1% to $1.055, while building materials company James Hardie wiped off yesterday’s strong rally to be 4.3% lower at $7.62.

Market heavyweight BHP Billiton lost 55c to $40.95 and Rio Tinto fell $1.58, or 2.2% to $7.42.

Energy stocks tracked the price of crude lower. The sector was down 0.8%.

Karoon Gas sank 91c, or 13.7% to $5.75 after announcing plans to plug and abandon a well at Montara reservoir. The company’s shares opened about 30% lower.

Woodside slid 55c, or 1.3% to $43.05, while Oil Search was 1.1% lower at $5.44.

The Reserve Bank’s decision to retain the cash rate continued to have a negative impact on the big four banks.

CBA and ANZ were the worst performers. Both stocks were down 1.2% to $52.77 and $21.51 respectively.

Insurer QBE was also 1.2% lower to be trading at $22.83 as the Banks and Financials sector weakened 0.7%.

Dexus added 1c to 85c and Mirvac weakened 1.5c $1.51 as reports surfaced that the two property trusts may make separate bids for Westpac Office Trust’s assets.

The Property Trust sector edged 0.2% into the red.

It was a relatively mixed morning for Industrials, however losses among the majors outweighed gains seen elsewhere as the sector fell 0.9%.

CSR slumped 5.7% to $1.74 after coming out of a trading halt after the Federal Court blocked the conglomerate’s plan demerge its sugar business yesterday. UBS also downgraded its rating on the stock to ‘neutral’ as a result.

Leighton dropped $1.21, or 3.1% to $38.17 and Brambles slid 8c to $6.66.

Asciano gained 0.9% to $1.7695 as it was awarded a $250m haulage contract from Macarthur Coal, while Downer EDI rose 3.1% to $8.35 after securing $750m in new contract across its rail, resources, energy and infrastructure divisions.

Consumer Discretionary weakened 1.4%.

Tabcorp slid 7c to $6.98 after announcing that a poor performance fro its Queensland casinos resulted in a 2% drop in net profit for the six months to 31 December 2009.

Crown and Tatts Group shed 2% and 2.6% to $7.84 and $2.23.

Retailers dropped off after the release of the national retail figures. David Jones slid 17c to $4.76, while online accommodation bookings provider Wotif.com slumped 4.5% to $6.54.

Myer fell 3.6% to $3.26 after reporting soft sales figures over Christmas.

Coca-Cola Amatil dipped 21c to $10.70. 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% to be trading at $5.53.

The Consumer Staples sector was flat as sector majors Wesfarmers and Woolworths hardly moved.

Telecommunications outperformed to be 1.1% higher on the back of a 5c rise to $3.42 from Telstra.

Biota was a highlight among Healthcare stocks having jumped 3.4% to $2.13 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 33.0 to 10,371.3, while the Straits Times Index dipped 1.6 to 2,763.3. Meanwhile, the NZSE50 added 6.2 to 3,141.3.

Spot gold was trading at US$1,106.70 per ounce, and the Aussie was buying US$0.8799. 

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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 lunch, ARB shares were up 20c to $5.20.

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 midday, Downer shares were up 25c to $8.35.

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 noon, Karoon shares had slumped 95c to $5.71.

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.

Half way through the day, Myer shares were trading down 15c to $3.23 each.

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 noon, Asciano shares were trading up 0.5c to $1.755, while Macarthur Coal shares were trading down 6c to $9.94.

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 midday, Tabcorp shares were trading down 7c to $6.98 each.

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