Another dip in commodity prices and a drop on Wall Street saw the Australian market finish 1.5% below the line on Wednesday. Property trusts and both consumer sectors were heavily sold on a day of broad-based losses.
In economic news, according to the ABS the number of dwellings that commenced construction dropped 4% in the March quarter. This was the fifth consecutive quarterly fall, however lower than the previous two quarters which slid 11.5% and 8.6%. Meanwhile, according to a survey released today, the leading index of economic activity rose by 0.7% in April and was down 3.5% over the year.
The All Ords fell 53.7 to 3,904.2, while the ASX/200 was off 58.4 to 3,904.1. Over 2.1 billion shares, or $5.2 billion had changed hands.
Materials and Resources continued on from the heavy losses seen yesterday, losing another 1.5%. Rio Tinto edged 0.1% below the line, while Australia’s largest company, BHP Billiton dropped 2.2%.
Fortescue recovered after early losses to finish up 3%, while OZ Minerals recouped some recent losses, posting a 6% rise as it completed its takeover transaction with Minmetals, reporting a final sale price of $1.354 billion.
Gold miners Newcrest and Lihir Gold shed 1.6% and 0.7%.
Onesteel and Bluescope shed 0.8% and 1.6%, while Sims Metals put on 2.1%.
Incitec Pivot and Nufarm slid 6.1% and 2.6%.
Fletcher Building and Boral sank 3.3% and 4.6% respectively.
Banks and Financials lost 1.5%. ANZ, Westpac and NAB shed 2.1%, 1.3% and 0.8%. CBA was down 1%.
Macquarie Group dropped 4.4%.
AMP and Suncorp-Metway and IAG added 2.5% and 0.9%, while QBE lost 2.1%.
Challenger Financial Services Group fell 3%.
Stockland shares lost 6.2% after saying it would be separating its residential organisational structure and management team into two units.
The broader Property Trusts sector gave up 3%. Westfield, Mirvac and GPT Group slid 2.8%, 2.2% and 1.9% respectively.
Industrials were 2.4% down, with Leightons and Brambles declining 3.7% and 1.7% respectively.
Airliners Qantas and Air New Zealand lost 2.8% and 3.1%, with the latter reporting a nearly 10% drop in passenger numbers.
CSR spiked 6% after saying it would demerge some businesses, while Asciano Group tumbled 14.7% after revealing it would increase its capital raising by a further $350 million to $2.35 billion.
Macquarie satellites, Macquarie Airports and Macquarie Infrastructure Group sank 0.4% and 2.1%.
Downer EDI was also off 6%.
The Energy sector shed 1% as oil prices slipped again overnight. Origin Energy and Oil Search drifted 1.9% and 1.8% lower. Woodside Petroleum and Santos gained 0.1% and 0.5%.
Coal and Allied was unchanged, while Paladin and Energy Resources Australia jumped 2.9% and 3.7% respectively.
Consumer Discretionary was down 2.0%. Unlisted department store Myer upgraded its profit guidance for the year on strong third quarter sales. Rival David Jones edged 0.2% lower.
Harvey Norman and Billabong lost 3% and 0.6% respectively.
Media stocks were mostly lower, with Newscorp, Fairfax and West Australian News losing 4.5%, 2.8% and 2.4%.
Seven dipped 0.7%.
Gamers Tatts, Crown and Tabcorp all lost between 2.1% and 2.7%.
Consumer Staples dropped a modest 2.0%, with Woolworths down 2.5% despite receiving ACCC approval for its proposed takeover of Macro Wholefoods. Wesfarmers lost 2.6%.
Fosters and Coca-Cola Amatil shed 0.6% and 0.2%. Lion Nathan rose 0.2%.
The Telecommunications sector shed 0.5%, with Singapore Telecommunications finishing flat. Australian subsidiary Optus said this morning it had been awarded a $186m four-year contract with the Australian Taxation Office.
Healthcare rose 0.1%, despite CSL sliding 0.1%. Healthscope spiked 5.9%, while Cochlear shed 2.9%.
Utilities retreated 0.8%, while the Information Technology sector was down 1.3%.
Around the region the Nikkei 225 rose 88.0 to 9,840.9, the Straits Times Index lost 5.7 to 2,282.5 and NZSE50 drifted 8.1 to 2,778.0. The Hang Seng shed 239.8 to 17,925.7.
Spot gold was trading at US$936.30 per ounce and the Aussie was buying US$0.7970.
ACCC gives Woolworths green light on takeover
The Australian Competition and Consumer Commission (ACCC) said it would not oppose Woolworths Limited's (WOW) proposed acquisition of organic supermarket operator, Macro Wholefoods Markets. The ACCC gave the green light to the purchase, saying it considered the acquisition would not substantially lessen competition.
At the close, Woolworths shares were down 66c to $25.50.
Air New Zealand passenger numbers fall
Air New Zealand reported a 9.9% drop in passenger numbers in May against the same month last year. The company said it carried 850,000 passengers, down on the 944,000 carried last May.
At the finish, Air New Zealand shares were down 2.5c to 79.5c.
Myer upgrades revenue guidance
Privately held department store chain, Myer said third quarter sales were strong and it expected the trend to continue into the fourth quarter. Myer said it now expected mid-to-high single digit increases in EBIT, NPAT and Earnings per Share from the previous year, having previously said flagged flat results.
OZ Minerals settlement with Minmetals complete
OZ Minerals announced that the settlement for the sale of most of its assets to Minmetals is complete. The Australian miner said the total proceeds amounted to US$1,354m after settlement adjustments.
At the close, OZ Minerals shares were up 5.5c to 96.5c.
Asciano increase equity raising by $350m
Asciano Group said it had increased the underwritten issue size to institutional investors by $350m. Asciano said total underwritten size would be up from $2 billion to $2.35 billion, with the funds raised being mainly used to repay debt.
At the end of the day, Asciano shares were down 21c to $1.25.
Stockland to separate residential business
Stockland said it would be separating its residential organisational structure and management team into two units. The company said the changes have been made as a result of the departure of residential CEO Denis Hickey, who is leaving in early July.
At the finish, Stockland shares were down 20c to $3.02.
Optus secures $186m ATO contract
Singapore Telecommunications said its subsidiary Optus had been awarded a four-year $186.5m contract with the Australian Taxation Office. Optus said it was the largest Federal Government contract to date for the Australian telco.
At the bell, Singapore Telecommunications shares were unchanged at $2.57.
CSR to proceed with demerger
CSR said it was proceeding with the objective of demerging to create two separately listed entities. The company is conducting final evaluation and due diligence to confirm the benefits of undertaking a demerger.
At the close, CSR shares were up 9c to $1.59.
ING Office Fund to raise $415m
ING Office Fund announced a capital raising of up to $415m would take place with the objective of strengthening the company’s balance sheet. The company also updated its earnings guidance for the year ending 30 June 2010 to 6c per unit.
IOF shares were halted at 55.5c.
