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Local markets fell as a drop in US consumer confidence dampened Aussie investor sentiment. Miners led the retreat as anxiety surrounding the US economic recovery pressured commodity prices and pressured the most heavily indexed sector on domestic boards.

The All Ords fell 57.7 points to 4,673.3, while the ASX/200 was down 60 points to 4,658.3. Over 874 million shares worth around $2.2 billion had changed hands.

Materials and Resources dropped 2% in morning trade with majors BHP Billiton and Rio Tinto accounting for roughly half of the 60 points wiped off the ASX/200. BHP fell 90c to $41.21, while Rio was down $2.11, or nearly 3%, to $70.64.

Gold plays Newcrest Mining and Lihir Gold sank 1.8% to $32.50 and 2.9% to $2.72.

Energy stocks were down 1.8%, partly a result of a couple high profile stocks trading ex-dividend today.

Santos, which will pay a 20c dividend, fell 47c to $13.31, while WorleyParsons shares were down 39c to $24.72 after losing rights to a 35.5c dividend.

Meanwhile, sector heavyweight Woodside Petroleum lost 49c to $43.92. The company reported a full year underlying profit of $1.91 billion, broadly in line with expectations. The company benefited from favourable currency movements, however revenue was down on lower commodity prices.

The Banks and Financials sector was 0.9% lower at lunch with NAB leading losses among the major banks. NAB shares fell 48c to $24.77.

Suncorp was the sector’s major laggard, falling 48c, or 5.2% to $8.73. The company reported a 41% rise in first half profit on better than expected earnings from general insurance and its investment portfolios. However, the company’s decision to cut dividends in an effort to save capital saw the stock heavily sold.

Industrials were 0.6% softer with MAp group among the worst hit. The Sydney Airport owner was down 8c, or 2.6% to $3.05.

Defying sector and general market weakness. Asciano Group rallied 11c, or 6.2% to $1.88. The transportation infrastructure company swung to a net profit half year of $79.1 million from a loss of $93.4 million last year. The result reflected results of group efforts to cut costs.

Consumer Discretionary stocks were down 1.4%. Among gamers Crown was down 15c to $7.84 and Aristocrat sank 12c to $4.15.

Consumer Staples sank 1.3% with the sector’s heavy hitter all trading below the gain line. Wesfarmers was down 2.1% to $31.50, while Woolworths lost 0.6% to $25.84.

Around the region the Nikkei 225 dropped 179.9 to 10,172.2 and the NZSE50 was down 15.8 to 3,110.5.

Spot gold was trading at US$1,104.60 per ounce and the Aussie was buying US$0.8923.

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Insurance gains see SUN deliver
Suncorp-Metway saw a surge in general insurance profit help the company’s overall bottom line to improve 41% to a $364 million profit for the six months to 31 December. Despite the increase in profit the financial services company said it would cut its dividend to 15c per share, under the Group’s payout target ratio of between 50% and 60% of company profit.

Half way through the day, Suncorp shares were trading down 48c to $8.73.

Neptune profit slumps, sees better times ahead
Neptune Marine Services reported a post-tax loss of nearly $300,000 for the half year to 31 December 2009, down from a profit of over $12 million in the previous corresponding period. The result came on the back of an 11% fall in revenue for the half to $84m.

By noon, Neptune Marine Services shares were steady at 40.5c.

Skilled Group profit slumps 79%
Skilled Group reported a 79% fall in post-tax profit to $4.5 million with revenue down 21% to $844 million for the six months to 31 December 2009. The staffing services company highlighted the fact that the prior corresponding period was the strongest in the company’s history and was always going to be hard to match, especially coming out of a global financial crisis.

Half way through the day, Skilled shares were down 2c to $1.73.

Ausenco reports 64% profit drop
Ausenco reported a full year $20.1 million attributable profit after tax, down 64.2% on 2008. The result reflected a challenging first half with business and economic conditions resulting in clients delaying the commencement of projects and awarding of contracts.

At midday, Ausenco shares were down 30c to $4.03.

Pacific Brands benefits from outsourcing
Pacific Brands, which one year ago controversially shifted its manufacturing operations to China, has posted a profit of $22.2 million for the six months to 31 December 2009, from a loss of $150 million in the previous corresponding period. Looking to the second half the company said that the shifting of workers to China and selling businesses would help see second half EBITDA rise when compared to the previous corresponding period.

At noon, Pacific Brands shares were down 1.5c to $1.145.

Iress delivers 20% profit lift
Iress reported a full-year net profit of $42.8 million, up 20% from 2008. The company said the result reflected stabilising conditions among the client base.

Half way through the day, IRESS Market Technology shares were down 16c to $8.03.

Goodman posts an even bigger loss
Goodman Group reported an operating profit of $139 million for the six months to 31 December 2009, however swung to a $500 million loss on unrealised writedowns in property values. The company’s loss has widened from the previous corresponding period’s loss of $465.9 million, despite the broader economy’s emergence from the global economic crisis.

At midday, Goodman Group shares were trading up 0.5c to 58c. 

Asciano celebrates inaugural profit
Asciano this morning posted its first profit since listing on the ASX three years ago. The port and rail operator’s post-tax profit was $79.1 million for the six months to 31 December, up from a loss of $93.4 million in the previous corresponding period.

At lunchtime, Asciano shares were trading up 11c to $1.88.

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