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Australian stocks remained below the line throughout the day, led by falls among commodity stocks. A widening in the nation’s trade deficit fuelled speculation in some circles that the RBA may consider holding off on further interest rate hikes in early 2010.

According to the Australian Bureau of Statistics, Australia’s trade deficit increased from $1.85 billion in September to a revised $2.38 billion in October. The rise was largely attributed to a drop in resource exports.

In other news, the Westpac-Melbourne Institute index of consumer sentiment dropped from 118.3 in November to 113.8 points in December. It was the second successive month of declines.

At the end of the day, the All Ords lost 33.8 to 4,652.6, while the ASX/200 shed 32.7 to 4,637.9. About 2.1 billion shares worth around $4.5 billion had changed hands.

Of the big four banks only NAB finished higher, up 7c to $27.96, while the broader Banks and Financials sector was 0.3% lower.

ANZ shed 42c to $21.51. Australia’s number four bank is considering selling bonds in the US, sources reported.
 
The insurers reversed morning losses to close mainly higher. AXA Asia Pacific put on 11c to $5.85.

The Property Trusts sector outperformed the market, advancing 0.9% on the back of a 25c gain to $12.05 from Westfield.

Goodman Group climbed 2.7% to 57c after announcing the construction of a $340 million warehouse in Hong Kong.

The gold miners continue to retreat as the price of the precious metal declines.

Newcrest Mining lost 58c to $35.17, while smaller rival Lihir Gold shed 8c to $3.28.

The broader Materials and Resources sector retreated 1.3%.

BHP Billiton shed 50c to $40.55. This morning the Big Australian announced the sale of its Ravensthorpe nickel mine in Western Australia to a Canadian miner for US$340 million.

Rio Tinto lost $1.00 to $70.90 and Fortescue dropped 7c to $4.14.

Many of the major stocks in the sector were down over 2%, however concrete manufacturer Adelaide Brighton climbed 2.4% to $2.59.

The Energy sector weakened 1.2%, with heavyweight Woodside down $1.03 to $47.17.

Santos gave up 38c to $14.30. Coal miners were relatively flat, however newcomer Stanmore Coal surged 100% to 40c on its first day on the exchange.

Consolidated Media was flat at $3.06, the day after Jamie Packer upped his stake in the company by just over 1% to 45.3%.

Jamie Packer’s other company, Crown, dropped 14c, or 1.8% to $7.79.

The Consumer Discretionary sector slid 0.8%.

Retailer Harvey Norman and media company Fairfax fell 2.6% and 3.6% to $4.12 and $1.60 respectively.
 
The Consumer Staples was off 0.6%, led by a 47c drop to $26.96 from Woolworths, the same level seen on 19 August.

Wesfarmers added 17c to $29.04.

Industrials lost 0.9% with most stocks trading below the gain line.

The Queensland Government announced yesterday that Queensland Rail’s commercial activities would be separated from the public passenger service and form into a new publicly listed company called QR National Limited. The government said it would undertake a float of Queensland Rail’s coal and freight assets and initially retain 25%-40% of QR National, with the remaining percentage of the new business to be offered to market via an IPO.

Alesco slumped 8.7% to $44.49 after forecasting a 29% slump in first half EBITA.

Leighton gave up 84c to $36.02, while Qantas lost 3.7% to $2.58.

Toll bucked the trend, adding 2.1% to $8.25.

The Telecommunications sector joined property trusts as the only sectors in positive territory with another 0.8% gain. Sector major Telstra tacked on 3c to $3.45.

Around the region, the Nikkei 225 lost 130.1 to 10,010.4, while the Straits Times Index shed 4.5 to 2,801.0. Meanwhile, the NZSE50 slid 9.7 to 3,127.6. The Hang Seng dropped 189.1 to 21,871.4.

Spot gold was trading at US$1,133.67 per ounce, and the Aussie was buying US$0.9062.

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Caltex profit in line with 2008
Caltex Australia said it was expecting post-tax profit to be around $180 million to $205 million on a replacement cost of sales operating profit for the year to 31 December 2009. This measures up against $186 million for 2008.

Caltex shares slumped 37c to $8.64 by the close.

Fall in exports sees deficit widen
According to the Australian Bureau of Statistics ("ABS") Australia’s trade deficit increased from $1.85 billion in September to a revised $2.38 billion in October. The rise was largely attributed to a drop in resource exports.

BHP offloads Ravensthorpe for US$340m
BHP Billiton said it had offloaded its Ravensthorpe Nickel Mine to First Quantum Minerals Australia Pty Ltd, a wholly owned subsidiary of Canadian company First Quantum Minerals Ltd for US$340m. BHP said that a result of the sale it would reverse a previously recognised pre-tax impairment charge from 30 June 2009 of around US$630 million, or US$441 million post tax, for the half year ended 31 December 2009.

At the end of the day, BHP shares were down 50c to $40.55

Goodman Group to build $340m warehouse
Goodman Group and Goodman Hong Kong Logistics Fund would build, through their Goodman Interlink Limited joint venture, a $340m, 24 storey warehouse and distribution centre in the hear of Hong Kong’s ports district. Construction is expected to be completed by January 2012 and has been forecast to deliver a yield on cost of 9%, with 50% of the floor space having been pre-leased by two major logistics companies.

By the finish, Goodman shares were up 1.5c to 57c.

Transfield, Worley JV awarded $76m contract
The Transfield Services – WorleyParsons Limited joint venture signed a seven-year contract valued at about $76m to deliver integrated services to Shell Philippines Exploration at its Malampaya gas facility. The companies said the contract includes a three-year extension option. 

At the end of the day, Transfield shares were up 3c to $3.94, while WorleyParsons shares were down 2c to $28.10.

Alesco expects 29% fall in 1H profit
Alesco Corporation forecast a 29% drop in half year EBITA compared to the previous corresponding period based on preliminary unaudited management accounts. The company said it is expecting EBITA to total $30 million at the end of the six-month period.

By the finish, Alesco shares were down 43c to $4.49.

Linc signs Fuel Cell Technology agreement
Linc Energy said it has signed an agreement with UK-based fuel cell technology company AFC Energy and its related company, B9 Coal, giving it the right to test the AFC Fuel Cell Technology on hydrogen produced from underground coal gasification for two years. Linc said it would purchase the first Alpha Fuel Cell System for £200,000 and has an option to invest £2.3 million into AFC Energy stock to extend the exclusivity period in perpetuity.

At the end of the day, Linc Energy shares were up 1.5c to $1.55.

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