The Australian sharemarket closed lower Tuesday despite a gradual recovery following a session low just after midday. Banks weighed, while most major miners recovered their early losses.
At the close, the All Ords was down 18.1 to 4,520.7, while the ASX/200 lost 16.3 to 4,505.1. About 2.7 billion shares worth around $4.5 billion had changed hands.
Macquarie slumped $3.07, or 6.1% to $47.28. The investment bank said second half profit would be 10% higher than the first, however the forecast full year profit of between $950 million and $1 billion clearly disappointed investors who were expecting in excess of $1 billion.
All the big four banks lost ground with ANZ shedding 40c, or 1.9% to $20.57, while Westpac and NAB were down 1.6% and 1.4% to $22.88 and $25.12.
The insurers were mainly below the gain line. AXA Asia Pacific slid 10c, or 1.6% to $6.35 and Suncorp-Metway lost 13c, or 1.4% to $8.94.
Challenger Financial Services Group fell 12c to $3.57. One month ago the stock hit levels around the $4.50 mark.
Overall, the Banks and Financial sector lost 1%.
The Property Trusts sector advanced 0.4% with Westfield tacking on 5c, or 0.4% to $12.23.
Stockland gained 5c to $3.90, while Goodman Group put on 1c to $58.
Australand rallied 1c, or 2.2% to 45.5c despite the company saying profit had fallen 31%.
The Materials and Resources sector reversed early losses to close 0.3% higher.
Heavyweight BHP Billiton added 25c, or 0.6% to $39.85 and Rio Tinto edged 19c higher to $66.99.
Fortescue advanced 1.1% to $4.61 after being 1.6% in the red at midday.
Alumina shed 1.5c to $1.585 after reporting a net loss of $26 million. The company did say, however, it expects to receive an improved dividend flow from AWAC in 2010.
Incitec Pivot rallied another 1.8% to $3.35 per share after yesterday’s announcement that it would recommence construction of an ammonium nitrate plant in Queensland.
The Energy stocks countered a decline in the price of crude with the sector slumping 0.5%.
Woodside lost 22c, or 0.5% to $42.11. Oil Search and Santos gave up 2c and 13c to $5.16 and $13.02 respectively.
Aquila and Energy Resources dropped 2.1% and 2.5% to $7.98 and $18.58 respectively.
David Jones climbed 13c, or 2.8% to $4.74. The department store rose after saying it was expecting profit to grow between 5% and 10%. JB Hi-Fi rose 1.3% to $19.32.
Consumer Discretionary shed 0.4%.
Tabcorp dropped 41c, or 5.7% to $6.74. Crown added to losses in the gaming sector with a 13c, or 1.7% to $7.65.
The media stocks were also down, with Newscorp retreating 1.2% to $17.14.
Consumer Staples gained 0.1% on the back of a 42c jump, or 1.5% rise to $27.73 from Wesfarmers.
Woolworths slid 0.8% to $25.31.
The Industrials sector fell 0.2%. Leighton, the biggest stock in the sector, retreated 59c, or 1.6% to $35.99.
Brambles lost 9c to $6.65 and Qantas fell 4c, or 1.4% to $2.80.
Engineering firm Bradken surged 11.6%, or 68c to $6.53, clearly beating expectations despite reporting a 26% fall in profit to $25 million.
Cochlear spiked 2.5%, or $2.16 to $63.65 per share. The hearing implant company said it was expecting profit to grow 15% this year.
The Healthcare sector overall added 0.8%, with CSL and Sonic up 1% and 0.8% to $31.55 and $14.70.
Telstra edged 1c lower to $3.35, while rival Singtel – owner of Australia’s Optus network – rose 6c, or 2.5% to $2.43 after the company said the strong Aussie dollar had seen revenue climb 20% last quarter.
The broader Telecommunications sector slid 0.3%.
Around the region, the Nikkei 225 lost 22.6 to 9,929.2, while the Straits Times Index added 9.5 to 2,703.1. Meanwhile, the NZSE50 slid 17.0 to 3,076.5. The Hang Seng gained 35.3 to 19,586.2.
Spot gold was trading at US$1,067.90 per ounce, and the Aussie was buying US$0.8682.
CDI first half loss improves to $13.7m
Challenger Diversified Property Group posted a net loss of $13.7 million for the half year to 31 December 2009 after allowing for property revaluations and write-downs of $42.4 million. The loss was an improvement on the previous corresponding period when the company posted a $58.6 million loss.
As the finish, CDI shares were down 1c to 48c.
Oz Minerals set for heavy loss
OZ Minerals expects to post a full year net loss of $500 million to $520 million when it reports its audited financial results on 25 February 2010. In its preliminary and unaudited estimates for the year ended 31 December 2009 the gold and copper miner forecast its sole mining operation Prominent Hill to post a NPAT of $190 million to $210 million.
At the end of the day, OZ Minerals shares were down 0.5c to 98.5c.
Macquarie 2H10 profit up to 10% higher than 1H10
Macquarie Group said, at its Operational Briefing today, that it estimates second half profit to be broadly in line with its first half profit of $479m. The investment bank said strong market conditions experienced in 1H10 have moderated in certain areas, however said there is potential for 2H10 profit to be approximately 10% higher than 1H10 profit but the outlook remains subject to market conditions and other factors.
At the end of the day, Macquarie shares were down $3.07 to $47.28.
Alumina posts full-year loss of $26m
Alumina reported a net loss of $26m for the year ended 31 December 2009, down on the $168m profit posted a year earlier. The company did say, however, it expects to receive an improved dividend flow from AWAC in 2010.
At the close, Alumina shares were trading down 1.5c to $1.585.
David Jones lifts profit guidance
David Jones said strong sales would see its first half and full year profit climb around 10% from the previous corresponding periods, up from a 0% to 5% increase previously flagged. Going into the following year, 2011, the company forecast growth of between 5% and 10%.
By the finish, David Jones shares were trading up 13c to $4.74.
Bradken profit slumps 26% to $25.7m
Bradken reported a post-tax profit of $25.7m for the six months to 31 December 2009, a 26% decrease over the previous corresponding period. The company said sales revenue across some of its divisions, including Engineered Products Division was significantly impacted by the global recession and the strength of the Aussie dollar.
At the final whistle, Bradken shares were up 68c to $6.53.
Cochlear forecasts FY NPAT growth of 15%
Cochlear announced an 8% jump in first half NPAT to a better than expected $75.2 million as the successful launch of a new products resulted in an increase in unit sales. The hearing implant company also forecast FY10 profit growth of at least 15% ahead of the previous year.
At the end of the day, Cochlear shares were up $2.16 to $63.55.
Strong Aussie $ boosts SingTel
Singapore Telecommunications said its wholly-owned Australian subsidiary Optus had recorded 4.8% growth in operating revenue for the quarter ended 31 December to $2.3bn, while operating EBITDA was up 3.6% to $529 million. In Singapore the company said the group revenue jumped 20% to S$4.45 billion ($3.6 billion), with the increase fuelled by growth from Singapore and Australia, while a stronger Aussie dollar also increased the bottom line.
By the finish, SingTel shares were up 6c to $2.43.
Australand profit drops 31%
Australand Property Group posted a NPAT of $120.2m for the year to 31 December 2009, down 31% on the previous year and in line with guidance. The group said it expects operating profit to be similar in 2010 to that achieved in 2009 as market evidence indicates that investment property valuations are at, or near, trough levels in the cycle.
At the end, Australand shares were up 1c to 45.5c.
