Local shares shed over 2% on the first day of the new financial year. Losses were broad-based with a negative lead from Wall Street and a drop in commodity prices triggering the sell-off.
Economic data released today by the ABS showed an increase of 1% in retail spending May, following a 0.3% rise in April and 2.2% in March. In original terms, turnover increased by 2.4% in May 2009 from a month earlier, with department stores benefiting the most.
By region, Western Australian retail spending jumped 3.5%, while NSW was virtually unchanged.
Meanwhile, a seasonally adjusted 9,953 dwellings were approved in May, down 12.5% from April 2009, and a 22.4% decline from a year ago.
In a third report released today by the ABS, the seasonally adjusted estimate for the value of total engineering construction work done in the March quarter fell 3.3%, to $17,006 million.
At the close, the All Ords was down 75.5 to 3,872.3, while the ASX/200 had retreated 80.9 points to 3,874.0. Over 1.8 billion shares, or $3.5 billion had changed hands.
BHP Billiton and Rio Tinto shed 2.4% and 1.1% to lead the broader Materials and Resources sector down 2.2%.
Fortescue shed 2.6%, with OZ Minerals down 3.3%.
Steelmakers Onesteel and Bluescope retreated 0.9% and 2.4% respectively.
Sims Metal Management and Aquarius Platinum sank 3.8% and 5.6%.
Sino Gold set the low water mark for the gold miners with a 4.6% drop, while Lihir and Newcrest shed 0.7% and 0.8% as the sub-sector reacted to the sharp drop in the price of gold overnight.
Energy stocks also lost ground after the price of crude dropped back below US$70 per barrel overnight.
Woodside Petroleum retreated 1.8%, while Origin and Santos lost 2.4% and 1.4% respectively.
The broader Energy sector shed 1.6%.
Oil Search bucked the trend to gain 1.1%.
Karoon Gas was down 1.9%, while Eastern Star Gas climbed 2.5%.
Uranium specialists were mixed with ERA down 4.3% and Paladin Energy putting on 2.2%.
Banks and Financials were broadly lower, with the sector giving up 2.5% overall. Among the banks Westpac, NAB and Macquarie Group lost 2.8%, 3.3% and 4.2%.
CBA and ANZ lost 2.3% and 1.5% respectively.
IAG was the only major insurer above the line, up 0.6%, while AXA Asia Pacific, QBE and Suncorp-Metway down 2.3%, 1.1% and 1.8% respectively. The latter appointed financial services executive Patrick Snowball as their new CEO.
Challenger Financial Services Group shares were down 3.1%.
Property Trusts were off 3.4%. Westfield was off 3.7%, while Stockland dropped 4.4%.
Lend Lease drifted 2.4% lower.
Consumer Staples declined 1.2%, with heavyweights Woolworths and Wesfarmers down 0.8% and 1.8% respectively.
Brewer Fosters fell 1.9%, while Lion Nathan and Coca-Cola Amatil both edged 0.1% higher.
Consumer Discretionary lost 1.9% on the back of retailers, which suffered following a drop in consumer confidence data out of the US.
JB Hi-Fi, Billabong and Harvey Norman fell 3.9%, 2.5% and 1.8% respectively.
David Jones, which yesterday added more than 10%, was down 2.2%.
Newscorp and Fairfax dropped 2% and 2.5% respectively, while gamers Crown and Tabcorp lost 2.2% and 2.7%.
Telecommunications lost 1.0%, on the back of a 1.2% drop in the price of Telstra shares.
The Industrials sector also retreated 2.1%. Brambles and Qantas gave up 1.3% and 1%.
Leightons slid 4.6%, CSR gave up 1.2% and Transurban shed 2.6%.
Toll Holdings weakened 1.1%, while Macquarie satellites, Macquarie Airports and Macquarie Infrastructure Group shed 4.8% and 2.1% respectively.
The Healthcare sector slid 1.4%, on the back of a 1.1% drop in CSL.
Utilities and Information Technology lost 1.6% and 2.1% respectively.
Around the region, the Nikkei 225 dipped 7.9 to 9,950.5, the Straits Times Index lost 6.4 to 2,326.7 and NZSE50 was down 15.7 to 2,780.4. The Hang Seng was closed for a holiday.
Spot gold was trading at US$929.30 per ounce and the Aussie was buying US$0.8033.
Cabcharge initially unaware of legal proceedings
Cabcharge Australia said it was initially unaware of being served a legal notice from the Australian Competition Consumer Commission (ACCC) as it did not open the relevant envelope until three hours after the courier delivered it. The company made the statement in response to an ASX query regarding the sudden decline in Cabcharge’s share price.
At the close, Cabcharge shares were down 7c to $5.09.
Suncorp appoints Snowball as CEO
Suncorp-Metway has appointed Patrick Snowball as the group’s chief executive officer. The company said Mr Snowball’s background includes 19 years as an executive with UK insurance group Aviva and more recently a deputy chairman and chairman’s role with Towergate for the past two years.
At the end of the day, Suncorp shares were down 12c to $6.58.
Hastings to tap market for $250m
Hastings Diversified Utilities Fund said it would seek to raise around $250 million through the issue of new capital as a part of broad range of capital management initiatives announced today. The fund said the money raised would be used to retire $80m in debt, with $50m in proceeds being used for the proposed expansion of Epic Energy’s South West Queensland Pipeline (SWQP).
Hastings Diversified shares were halted at $1.185.
CPA off-loads Brisbane office for $110m
Commonwealth Property Office Fund (CPA) said it had agreed to sell its property at 300 Queen Street, Brisbane for $110m. The sale, to a private investor, represents an initial yield of 8.35%, although a 16.7% discount to the 31 March 2009 book value of $132 million.
By the close, CPA shares were down 3.5c to 79.5c.
Clive Peeters closes Strategic Review
Clive Peeters has decided to bring its Strategic Review process to an end after the company said it had not yet produced an acceptable outcome that represents shareholder value, or is in the best interests of shareholders. The company said its preferred outcome was a re-capitalisation of the company, however the current economic environment had made this difficult.
At the finish, Clive Peeters shares were down 1.5c to 16.5c.
FEA sales total $23m for the year
Forest Enterprises Australia shares slumped over 7% Wednesday morning after the company said the sales of its managed forestry investment products in 2008/09 totalled approximately $23m. The company also said revenues from timber sales and plantation establishment in FY09 are expected to significantly exceed those from FY08.
By the bell, FEA shares were down 1.5c to 12.5c.
