The local sharemarket finished the day lower having fallen away in afternoon trade. Smaller sectors such as healthcare showed strength, while materials and resources dragged.
In economic news, the ANZ bank released it seasonally adjusted job advertisements for May, saying job ads fell 0.2% compared to April and 49.1% from May 2008.
Meanwhile the NAB Business Survey for May was also released, showing some improved confidence in the business community, however current conditions remain weak.
Finally, according to the Australian Finance Group the number of grants to homebuyers entering the market for the first time has deteriorated for the second consecutive month having reached a peak in March.
At the end of the day, the All Ords was down 35.4 to 3,933.6 and the ASX/200 lost 36.3 to 3,934.9. Over 2.3 billion shares, or $5.7 billion had changed hands.
Banks and Financials edged 0.1% higher. Among the big 4 banks, ANZ and Westpac added 0.7% and 0.6%, while CBA climbed 1.3%.NAB dropped 1.1%.
Heavyweight insurers moved mainly into the red. AMP, Suncorp-Metway and AXA Asia Pacific fell 1.4%, 0.6% and 0.8% respectively.
QBE put on 0.6%.
ASX, the local bourse operator, shed 4.4%, while investment bank Macquarie Group was 0.1% below the line.
The broader Property Trust added 0.1%. Westfield and Stockland added 2.1% and 1.6% respectively.
Dexus was flat, while GPT Group slumped 10.4%.
Energy stocks were 2.1% weaker as the price of crude slid for the second straight day. Woodside Petroleum and Oil Search were down 1.1% each.
Origin shed 3.7% after downgrading its profit guidance. Santos was 0.4% dearer.
Felix Resources gave up 9%, while uranium specialists Paladin and ERA shed 4.6% and 3.9%.
Worley Parsons dipped 1.3%, while Extract Resources spiked 9.5%.
Materials and Resources fell 3.3%, thanks largely to a 4.4% slump in BHP Billiton. Rio Tinto gave up strong morning gains to close 2.6% lower.
OZ Minerals investors reacted positively to the board's announcement it would stick with its proposed asset sale to Minmetals, despite receiving two other recapitalisation proposals. Its shares added 2.8%.
Lihir Gold and Newcrest shed 3.3% and 3.8% respectively as the price of the precious metal retreated overnight.
Onesteel and Bluescope were off 2.6% and 4.2%, while Fortescue and metal recycler Sims Group fell away to finish 2.2% and 1% below the line.
Orica was up 1.7% as it goes ex-div tomorrow.
Consumer Staples was 0.1% stronger. Woolworths edged 0.4% lower, while Wesfarmers put on 0.5%.
Coca-Cola Amatil and Lion Nathan edged both edged 0.1% lower. Fosters added 1%.
Grain handlers ABB added 1.1%, while peer AWB dropped 3.1%.
Consumer Discretionary was flat at the bell. JB Hi-Fi was the standout, rising 5.1% after upgrading its profit guidance. David Jones was flat, while Harvey Norman shed 1.6%.
Media stocks were mixed with Newscorp putting on 0.7% and Fairfax down 1.6%.
Crown drifted 0.8% lower.
Among Industrials, Leightons, Brambles and Toll shed 2.9%, 1% and 1.7% respectively. The broader sector was off 1.1%.
CSR sank 8.9%, while Qantas was flat.
Macquarie Group satellites, Macquarie Airports and Macquarie Infrastructure Group climbed 3% and 2.9% respectively.
The Telecommunications sector was 0.9% up on a 1.3% gain from Telstra.
Healthcare soared 3.5% to be the sharemarkets best performing sector. CSL spiked 5.2% after abandoning its proposed takeover of Talecris and instead opting for a $1.59 billion share buyback.
Sonic Healthcare climbed 4.3%.
Around the region, the Nikkei 225 was down 78.8 to 9,786.8, the Straits Times Index was flat at 2,333.6 and the NZSE50 eased 5.8 to 2,822.4. The Hang Seng sank 232.9 to 18,020.5.
Spot gold was trading at US$951.20 per ounce and the Aussie was buying US$0.7899.
Mirvac completes institutional raising
Mirvac successfully completed the $922 million institutional component of its capital raising. The company also announced the $178 million retail component of the capital raising was now fully underwritten.
At the close,
Mirvac shares were down 2c to
$1.19.
OZ Minerals reaffirms Minmetals commitment
Oz Minerals said it had received two unsolicited proposals to address the company’s recapitalisation needs. The mining company said it had rejected both proposals and reaffirmed its commitment to the asset sale to China Minmetals Non-ferrous Metals Co, Ltd.
At the end of the day, OZ Minerals shares were up 2.5c to 91c.
CSL abandons Talecris takeover, announces share buyback
CSL has abandoned its takeover offer for US giant Talecris Biotherapeutics following the US Federal Trade Commission decision to block the deal. At the same time, the Australian healthcare company said it would instead buyback over 54 million shares on-market, or around 9% of the company’s stock on issue.
By the close, CSL shares were up $1.51 to $30.49.
Coffey anticipates EBITDA increase
Coffey International expects its full-year operating EBITDA to be in the range of $54m to $57m, up on last year's $49.7m. The company said it had seen a significant drop in revenue across its Consulting and Project Management divisions in the March quarter after a strong performance in the first six months of the financial year.
At the finish, Coffey shares were down 3c to $2.07.
Origin downgrades profit guidance
Origin Energy expects its underlying profit for the year to be below the previously forecast range of 20%-25% higher than last year’s figure. The company said reduced its guidance following the announcement by its majority owned Contact Energy had downgraded its earnings guidance due to adverse hydrology conditions in New Zealand.
At the final whistle, Origin shares were down 55c to $14.45.
JB Hi-Fi upgrades guidance
JB Hi-Fi said strong sales in the second half of the year would see the company exceed profit expectations for the year to 30 June. The electronics retailer said it was now expecting a profit of around $92m, up 41% from the previous corresponding.
At the end, JB Hi-Fi shares were up 69c to $14.17.
iiNet forecasts $25m NPAT
iiNet expects to deliver an NPAT of $25m for this financial year on the same day the company announced an extension to an existing debt finance facility. The internet service provider is also expecting to deliver in excess of $415m of revenue, more than $65m of EBITDA for the same period.
At the close of trade, iiNet shares were up 1.5c at $1.665.
