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Sovereign debt concerns out of Europe continued to weigh on the Aussie market, however an afternoon rally saw losses limited to just 0.1%. While most sectors finished below the gain line, strength was seen among the defensive healthcare and telco stocks.

Meanwhile, the Australian Reserve Bank Assistant Governor warned that further interest rate rises were on the way as the bank looks to head off a house price bubble.

At the close, the All Ords lost 6.9 to 4,896.3, while the ASX/200 retreated 6.1 to 4,885.4. Around 2.2 billion shares worth around $5.1 billion had changed hands.

The Banks and Financials sector was down 0.2%.

ANZ lost 2c to $25.35, while CBA dipped 1c to $57.20. Westpac edged 3c higher to $27.79 as NAB bucked the trend, adding 0.5% to $27.52.

All the major insurers were lower as M&A activity in the sector draws closer to a decision from the ACCC. IAG shed 5c, or 1.3% to $3.91.

The Property Trusts sector reversed early gains to finish 0.9% below the gain line.
 
Westfield fell 11c, or 0.9% to $11.88, while Stockland shed 6c gain to $3.99 after both stocks were in the black at midday.

Elsewhere, the Materials and Resources sector gave up 0.1% on widespread losses among the mid-cap stocks.

BHP Billiton lost 4c, or 0.1% to $43.32, while Rio Tinto rallied $1.42, or 1.8% rise to $78.62.

Gold stocks paced a decline in the price of the precious metal, with Newcrest and Lihir off 1.6% and 1.9% respectively.

Iluka Resources gained 13c, or 3.1% to $4.36, however other stocks in the sector were lower, including Alumina, James Hardie and Macarthur Coal which were between 2% and 4% in the red.

Orica and Amcor capped losses, climbing 1.8% and 1.6% to $26.67 and $6.29.

The standout in the Energy sector was Santos whose shares climbed amid rumours Woodside Petroleum is set to make a takeover offer for the company. 

Santos shares jumped 2.7% to $14.76.

Woodside added 6c to $47.48, while the sector was 0.4% stronger.

Origin was up 17c to $16.83 as uranium specialists Paladin and ERA lost 2.2% each.

Retailing stocks Pacific Brands, which today closes its last Australian factory, Myer and JB Hi-Fi all lost between 1.1% and 1.6%.

Premier Investments, owner of the Just Jeans brand, lost another 3%, bringing this week’s losses to almost 9%.

Crown shares fell 22c to $8.17 after saying it would spend over $200 million upgrading facilities for high-rollers at the Melbourne Crown casino, including purchasing a plan to fly them in.

Newscorp added 45c, or 2.5% to $18.68, while Fairfax dipped 1.9% to $1.80.

The Consumer Discretionary sector eased 0.3%, while the Consumer Staples sector was also down 0.3%.

The big retailers, Woolworths and Wesfarmers, were 0.5% and 0.2% lower, while Coca-Cola gained 0.8% to $11.24.

The Industrials sector was 0.9% weaker after heavyweight Brambles fell 15c, or 2% to $7.28, while Leighton lost 24c, or 0.6% to $38.81.

Qantas added 6c, or 2.2% to $2.85. Smaller rival Virgin shed 2.9% to 67c.
 
Telstra gained 3c to $3.11, while the broader Telecommunications sector added 0.9%.

1.3% and 2.3% gains from CSL and Ramsay saw the Healthcare sector advance 0.6%.

Around the region, the Nikkei 225 gained 19.6 to 10,834.6, while the Straits Times Index dipped 0.2 to 2,886.2 and the NZSE50 added 4.8 to 3,237.5. The Hang Seng lost 258.5 to 20,750.1.

Spot gold was trading at US$1,087.60 per ounce, while the Aussie was buying US$0.9096.

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RBA paints an optimistic picture
Philip Lowe, assistant governor to the RBA, said this morning that the Australian economy was in a reasonably solid upswing. Mr Lowe said however that the nature of the upswing would start to shift from public sector driven, through government stimulus packages, to a more private sector led recovery.

Soul Pattinson profit down on lower coal prices
Washington H. Soul Pattinson said its post-tax profit fell 86.9% to $123.4m for the six months to 31 January 2010. The result came on the back of fluctuations in the earnings of its 60% controlled coal miner New Hope Corporation, which reported earlier in the week.

By the end, Soul Pattinson shares were up 18c to $13.80.

Brickworks half-year profit falls 65.5%
Brickworks reported a 65.5% drop in profit for the six months to 31 January 2010. The company posted a profit of $88.2 million for the period, compared to $255.3 million a year earlier.

At the finish, Brickworks shares were trading up 5c to $12.65.

Crown to spend $212m on VIP upgrade
Crown said it would be spending $212m to upgrade the premium player facilities at the Crown Entertainment Complex. The company said the decision to make the investment was underpinned by strong growth in recent years of international premium player turnover.

By the close, Crown shares were down 22c to $8.17.

Aquila says Belvedere Pre-Feasibility Study complete
Aquila Resources said the Pre-Feasibility Study for the Belvedere Hard Coking Coal Project in Central Queensland confirmed the potential technical viability of the project. With a 24.5% interest in the project, Aquila said the study proposes an underground longwall mine, producing initially 3.5 million tonnes per annum of coking coal product and then up to 7Mtpa of coking coal product when the second longwall is installed.

At the end of the day, Aquila shares were down 27c to $10.71.

Santos hoses down takeover talk
Santos in response to an ASX price query, hosed down speculation that it was a takeover target for Woodside Petroleum. 

By the final whistle, Santos’ share price was 39c higher to $14.76.

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Market Watch by egoli