Australia’s major index slumped to its lowest point in around three weeks after world equity markets felt the impact of the news that ‘Dubai World’, the Dubai government’s investment and development vehicle, said it would halt repayments for up to six months on its nearly US$60 billion in debt. Banks and miners were the heaviest hit with the market 2.9% overall.
A number of European markets slumped over 3% overnight, while US markets will likely open lower later tonight after Wall Street was closed Thursday due to the Thanksgiving holiday.
At the bell, the All Ords fell 130.4 to 4,597.2, while the ASX/200 dropped 136.5 to 4,572.1. About 2.7 billion shares worth around $6.5 billion had changed hands.
The Banks and Financials sector slumped 3.3%. The big four banks lost between 3.4% and 4%. NAB plunged the most, down $1.12 to $27.01.
ANZ lost 79c to $21.19 despite saying it had no exposure in Dubai.
Macquarie Group dropped $2.41, or 5% to $45.34, down from highs of $58 at the end of September.
The insurers were also heavily sold, while the Property Trusts sector lost 1.9% on the back of a 20c, or 1.7% fall to $11.88 from Westfield shares.
The Materials and Resources sector sank 3.3%.
Heavyweight BHP Billiton plunged $1.41, or 3.4% to $40.39. Rio Tinto was off around 4% in early trade though recovered slightly to be down $2.10, or 3% to $68.55. The two miners fell 4.8% and 4.2% respectively in London overnight.
Fortescue slumped 13c to $4.01, while OZ Minerals retreated 7.5c or 6% to $1.18.
Among the chemical companies Incitec Pivot was off 14c, or 4.7% to $2.81 and Orica was $1.17 cheaper at $24.15.
Energy stocks weakened 3% overall. Woodside and Origin lost 2.8% and 3.2% to $48.10 and $15.29 respectively.
Whitehaven was the worst performer among the coal stocks giving up 20c, or 4.5% to $4.25.
Heavyweight Industrial Leighton slumped $1.45, or 4% to $34.77. The engineering and construction firm has about $750 million in contracts in Dubai across five projects though is receiving payments on schedule at this stage.
Brambles was down 15c, or 2.2% to $6.56.
Toll and Qantas gave up 3.6% and 4.2% to close at $7.92 and $2.53 respectively. CSR’s share price continues to be battered, shedding 5c, or 2.9% to $1.70.
Macmahon added 0.5c to 57c as the company forecast full year profit to double on what was recorded in FY09.
The sector lost 3%.
The Consumer Discretionary sector was 2.5% off the pace with losses felt across the retailers, gamers and media stocks.
Harvey Norman fell 17c, or 3.9% to $4.22. Crown slid 10c, or 1.3% to $7.68 and Fairfax dropped 5.5c, or 3.4% to $1.58.
Wesfarmers lost 64c, or 2.2% to $28.81 to lead the Consumer Staples sector 1.6% lower.
Woolworths weakened 30c, or 1.1% to $27.89.
Metcash shed 7c to $4.56 as the grocery wholesaler unveiled plans to bid for hardware business Mitre 10.
A relatively modest 2c, or 0.6% decline from Telstra to be trading at $3.39 helped the Telecommunications sector be the strongest sector by the end of the day, also down 0.6% overall.
Around the region, the Nikkei 225 lost 238.2 to 9,145.1, while the Straits Times Index was closed. Across the Tasman, the NZSE50 fell 32.9 to 3,094.4. The Hang Seng dropped 765.3 to 21,445.1.
Spot gold was trading at US$1,185.05 per ounce, and the Aussie was buying US$0.9036.
Primary forecasts EBITDA growth of 15%
Primary Health Care expects to deliver a minimum EBITDA growth rate of 15% per annum in FY11 and FY12. The company said current changes in healthcare funding with the different responses of industry players, and in particular, the timing of the market workout to these responses made predictions of growth in FY10 less definite.
At the close, Primary Health Care shares were down 13c to $5.88.
Centennial expects stronger 2H
Centennial Coal said it is expecting a stronger second half than first half in FY10 given the back-weighting of exports as its Airly and Mandalong mines enter the market. Chairman, Kenneth Moss, said a positive movement in spot prices recently should also translate into new higher contract prices.
By the weekend, Centennial shares were down 12c to $3.23.
Macmahon expects FY profit to double
Macmahon Holdings Limited (MAH) said it was confident of achieving profit after tax of $34 million for FY10, double the 2009 result of $17 million. The company said an increase in tendering activity gave it some confidence of the capacity to improve on the revised forecast, subject to the timing of new work.
At the close, Macmahon shares were up 0.5c to 57.5c.
FPA downgrades full year guidance
Fisher & Paykel Appliances Holdings Limited extended its normalised net profit after tax guidance for the year ending 31 March 2010 from a range of $20m to $23m to now be approximately $16m to $23m due to volatile market conditions. The company also forecast FY10 net result after tax and abnormals at a loss of approximately $58 million to $65 million following impairments and fair valuation write-downs associated with North America.
By the finish, Fisher & Paykel Appliances shares were down 4.5c to 47c.
Metcash looks to acquire Mitre 10
Metcash announced it has made a proposal to subscribe for an initial interest in 50.1% of the Mitre 10 group with the potential to acquire 100% of the Mitre 10 group in either 2012 or 2013. The company said the entry into the Australian hardware sector via Mitre 10 provides a good opportunity to leverage its merchandising and brand management skills and logistics capability.
At the final whistle, Metcash shares were down 7c to $4.56.
Hunter Hall forecasts 10% growth for FY10
Hunter Hall International expects to see net after tax profits and dividends increase by at least 10% over the figure achieved in 2009 after a solid start to the year. The investment management company said Funds under Management in the financial year to date have increased 20% to $1.99 billion.
By the end of the day, Hunter Hall shares were down 4c at $6.86.
AJ Lucas faces tough conditions
AJ Lucas Group said the current year to date had been below expectations. At today’s AGM the infrastructure technology company for the utilities industry said the results since 1 July were a legacy of the global economic downturn in the first half of 2009.
At the finish, AJ Lucas shares were down 14c to $4.30.
