Shares slump 1.2% through to lunch
Local shares were more than 1% lower at lunch as the market tracked European sentiment, where markets lost ground, over a more positive lead from Wall Street. Losses were widespread, although the miners and energy stocks were particularly heavily sold after metal and oil prices lost ground overnight.
At midday, the All Ords slumped 52.1 to 4,928.4, while the ASX/200 retreated 55.2 to 4,899.1. Around 1.1 billion shares worth around $2.7 billion had changed hands.
In London, BHP Billiton and Rio Tinto both lost 2.8% overnight. For their Australian listing BHP was down 67c, or 1.6% to $42.06, while Rio Tinto slumped $1.85 per share to $76.67 each.
Fortescue gave up 17c, or 3.2% to $5.09, however Onesteel was hammered as it faces the prospect of its Whyalla blast furnace being out of action for up to a month for repairs. Its shares tumbled more than 5% to $3.71.
Newcrest shares were down 21c to $33.76 as investors weighed a downgrading to production guidance against the more positive news that the company's Cadia East mine will exceed its anticipated 37 year project life.
Lihir Gold was flat, as the broader Materials and Resources sector was down 1.6%.
Losses from the big four banks led the Banks and Financials sector down 1%.
ANZ, CBA and NAB were down between 1% and 1.2%, while Westpac retreated 53c to $27.67.
Among the insurers, AMP and IAG gave up 1.7% and 1.3% respectively, underperforming the sector.
Meanwhile Macquarie shed 66c, or 1.3% to $50.19.
The Property Trusts sector eased 0.6% below the line, with Westfield and Stockland, the two largest stocks in the sector, both down 0.7%.
The Energy sector slumped 1%.
Woodside retreated 59c, or 1.3% to $46.28, while Santos shed 1.4% to $14.01 after downgrading production guidance by around 4% due to flooding in central Australia.
Caltex slumped 43c, or 3.5% to $11.84 after warning that refiner margins would be tight in the second half of the year.
Uranium majors, Paladin, ERA and Extract Resources were down between 2% and 3%.
Elsewhere, the Consumer Staples sector was off 1.5% after Wesfarmers shed 90c, or 2.9% to $30.24. The conglomerate said its flagship Coles supermarket chain saw sales climb 4.9% in the third quarter, missing expectations.
Rival Woolworths was 1% lower at $26.92.
The Consumer Discretionary sector was 0.5% below the line. Billabong was the major laggard among the retailers, down 35c, or 3% to $11.44 each.
Among the gamers, Crown slumped 13c, or 1.6% to $8.17.
Among Industrials, transport and logistic stocks fell as the sector overall posted a 0.7% loss.
Toll and Asciano gave up 1.1% and 1.7% respectively.
Among the airlines, Qantas was 0.3% lower, while the more volatile Virgin Blue saw its shares sink 2c to 61.5c.
Sector heavyweight Leighton lost 0.7% to $36.23, while Brambles eked out a 0.3% rise.
The defensive Healthcare sector offered no respite from the sell-off for investors to be down 1.1%.
CSL retreated 1.1% to $36.75.
Ramsay, Sonic and Healthscope lost between 1.5% and 2%.
Around the region, the Nikkei 225 shed 215.7 to 10,874.4, while the NZSE50 slid 2.8 to 3,302.2 to 3,305.0. The Strait Times Index sank 13.1 to 2,954.6.
Spot gold was trading at US$1,145.50 per ounce, while the Aussie was buying US$0.9259.
Coles sales climb 4.9% in Q3
Wesfarmers said that sales at Coles climbed 4.9% in the third quarter to $6.9b, when compared to the previous corresponding period. Despite the stronger result, Wesfarmers offered a cautious outlook for the remainder of the year saying the positive effect of the government’s stimulus package was wearing off.
At midday, Wesfarmers shares were trading down 90c to $30.24.
Newcrest downgrades production guidance
Newcrest Mining has downgraded its FY10 production guidance once again due to extended commissioning and slower ramp-up at its Hidden valley operation. The gold miner said FY10 gold production is expected to be at the lower end of the annual guidance range of 1.81 – 1.91 million ounces with probable outcomes settling in the range of 1.81 Mozs plus 1% minus 3%.
At lunch, Newcrest shares were down 22c to $33.75.
Floods force Santos to downgrade guidance
Santos said that flooding in Central Australia has meant that it has been forced to defer the production of 2 mmboe over the course of 2010. As a result, the oil producer has downgraded its production guidance to between 49mmboe and 52mmboe this year.
At noon, Santos shares were trading down 20c to $14.01.
Caltex tips margins to tighten in 2H10
Caltex Australia said at its AGM in Sydney this morning that refiner margins would remain under pressure in the second half of the year, prompting the oil refiner to offer a cautious outlook for the second half. Despite this, Caltex said the medium-to-long term outlook remained strong.
At lunchtime, Caltex shares were down 39c to $11.88.
CBA announces plan to acquire 20% stake in VIB
Commonwealth Bank of Australia last night announced an agreement to acquire a 20% stake in Vietnam International Bank. CBA’s association with VIB started in 2009, when the two companies engaged in a Technical Assistance Program.
At midday, CBA shares were down 73c to $58.80.
Iluka quarterly production falls
Iluka Resources reported a 23.7% drop in mineral sands production to 370,200 tonnes compared to the previous corresponding period. However, the company said the demand for high value mineral sands products recovered in Iluka’s main geographical markets in the March quarter of 2010.
At lunch, Iluka shares were down 10c to $4.77.
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