There was little cheer for investors a week out from Christmas as Australian shares followed global peers lower to be 1.3% lower at lunch Friday. Losses were broad based with only two of the minor sectors managing to stay in the black.   

At midday, the All Ords lost 56.9 to 4,632.7, while the ASX/200 shed 62.1 to 4,608.2. About 1 billion shares worth around $4.7 billion had changed hands.

The Banks and Financials sector weakened 1.2%, however the big four banks performed much better than their peers in the US and UK.

NAB dropped 77c, or 2.9% to $25.88, while ANZ and CBA fell 1.1% each to $21.34 and $51.50.

AXA Asia Pacific added the most points to the entire market with a 13c, or 2% rally to $6.50. Yesterday NAB trumped AMP and AXA SA’s joint bid for the insurer, sending its shares soaring.

AMP shares shed 5c to $6.30.

Investment bank Macquarie slid $1.09 to $45.26.

Among the Materials and Resources gold stocks were particularly weak after the price of the precious metal dropped 2.6% overnight.

Lihir and Newcrest fell 4.6% and 3.7% to $3.12 and $33.95 respectively.

The world’s largest miner BHP Billiton lost 72c, or 1.7% to $40.69. Rio Tinto slid 74c to $70.91.

The sector was down 2% as base metal prices were at least 1.8% lower in London.

The Energy sector slipped 0.4% despite a 29c gain to $46.99 from Woodside. Another stock in the black was Energy Resources, which added 50c to $23.08.

Santos shed 23c to $13.63 and WorleyParsons lost 2.5% to $27.28.  New Hope sank 3.1% to $4.35.

Telstra slumped 10c, or 2.8% to $3.45 after cutting its full year revenue forecast. The company also agreed to terms of engagement for its participation in the NBN rollout.

The Telecommunications sector was 2.7% in the red.

Leighton slid 31c to $36.70. The company announced it had completed a $670 million Syndicated Performance Bond Facility with a consortium of Australian and International lenders.

The Industrial sector weakened 0.8% as losses overwhelmingly outnumbered gainers.

Brambles lost 9c to $6.20, while Macquarie Airports slid 8c to $2.78 despite reporting a 7.8% increase in passenger numbers at Sydney Airport for the month of November.

Asciano put on 3c, or 1.8% to $1.71 after announcing it is the preferred rail operator to transport magnetite from Xstrata Copper’s Ernest Henry Mining operation in Queensland in a contract that is expected to generate revenue of approximately $400 million over a 10-year period.

Wesfarmers led the Consumer Staples sector 2% lower with a 3.4% fall to $28.20.

Foster’s dropped 2.7% to $5.46 after the brewer said its wine performance in the first half would be below the company’s expectations due to exchange rate movements and US market conditions. Coca-Cola Amatil dipped 28c to $11.04.

Graincorp shed 5c to $5.78 as it plans to exit the merchandise sector by the end of FY10 and sell a number of its merchandise service centres in the process.

The Consumer Discretionary sector slid 0.7% in a mixed day relative to other sectors.

Retailers David Jones and Pacific Brands dropped 3.3% and 3.1% to $5.26 and $1.085 after a surprise fall in retail sales in the UK last month.

Aristocrat rallied 5.2% to $4.08, however larger gamers Crown and Tabcorp fell 1% and 1.3% to $7.60 and $6.76 to erase its gains.

Information Technology and Healthcare were the only sectors above the line. They put on 1.8% and 0.3% on the back of 2.3% and 0.5% gains from heavyweights Computershare and CSL respectively.

Around the region, the Nikkei 225 lost 130.4 to 10,033.4, while the Straits Times Index shed 24.0 to 2,789.3. Meanwhile, the NZSE50 added 7.6 to 3,130.6.

Spot gold was trading at US$1,104.45 per ounce, and the Aussie was buying US$0.8865.

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Telstra revises revenue guidance downward
Telstra Corporation said it now expects sales revenue in FY10 to be “flattish” compared to the previous year. The telco said the major reasons for the lower than expected growth are the strength of the local currency, difficult operating conditions in Hong Kong, strong competition locally and an accelerated move to wireless-only homes.

Half way through the day, Telstra shares were trading down 11c to $3.44.

FGL says exchange rates hurting wine earnings
Foster’s Group said overall wine performance in the first half would be below the company’s expectations given the significant impact of exchange rate movements and US market conditions. The company said unfavourable exchange rate movements are expected to negatively impact first half wine earnings by between $80 to $90 million.

At lunch, Foster's shares were trading down 16c to $5.46.

GrainCorp to offload merchandise
GrainCorp said it has decided to exit the merchandise sector by the end of FY10 and sell a number of its merchandise service centers in the process. The company said the decision was made after consideration of the results of a review of GrainCorp’s participation in the merchandise sector.

By noon, GrainCorp shares were down 5c to $5.78.  

Leighton completes $670m bond facility
Leighton Holdings announced that it has completed a $670 million Syndicated Performance Bond Facility with a consortium of Australian and International lenders. The company said the facility would be used to provide the performance bond obligations of the various Leighton Group operating companies as they take on and deliver construction projects.

At lunchtime, Leighton shares were down 30c to $36.71.

Passengers up 7.8% at Sydney Airport
Passengers passing through Sydney Airport increased 7.8% in November, from the previous corresponding period, according to MAp Group. Increases were also at Copenhagen, notably a 22% jump in domestic passengers there.

At midday, Map shares were down 8c to $2.78.

Asciano selected preferred operator
Asciano said it has been selected as the preferred rail operator to transport magnetite from Xstrata Copper’s Ernest Henry Mining operation in Queensland in a contract that is expected to generate revenue of approximately $400 million over a 10 year period. The company said its ports and bulk rail business has won a tender process that would see it enter into a take or pay contract with Xstrata Copper to haul a minimum of 1.2 million tonnes of magnetite commencing 1 February 2011 for 10 years.

At lunchtime, Asciano shares were up 3c to $1.71.