Australian Stock Market Report - Closing

The financial sector fell by 1pct as worries about the fiscal health of the Eurozone continued to weigh on investor sentiment. Shares in the ANZ (ANZ) fell by 1.9pct to $20.57 while Westpac (WBC) eased by 1.6pct to $22.88 and the NAB (NAB) was down 1.4pct to $25.12. Shares in the Commonwealth Bank (CBA) dropped 0.1pct to $52.72. Macquarie Group (MQG) today delivered a trading update to the market, announcing that 2H10 profit could rise by more than 10pct. However MQG also hedged its bets, by claiming there is a chance 2H profit could be the same as 1H. Investors appeared unconvinced by the outlook, sending MQG shares down 6.1pct to $47.28, its biggest slide in eight months.

The energy sector also eased by 0.5pct despite a firmer oil price. At 4pm AEDT the Nymex contract was up 0.8pct to US$71.75 a barrel. Shares in Woodside Petroleum (WPL) fell 0.5pct to $42.11 while Santos (STO) was lower by 1pct to $13.02 and Oilsearch(OSH) dropped 0.4pct to $5.16. Caltex (CTX) fell 0.1pct to $8.96.

The materials sector gained 0.3pct as shares in BHP Billiton (BHP) picked up ahead of the release of the mining giant's 1H results tomorrow. BHP shares added 0.6pct to $39.85, also boosted by firmer metals trade. Shares in Rio Tinto (RIO) also reversed earlier losses, rising by 0.3pct to $66.99 while iron ore player Fortescue Metals Group (FMG) gained 1.1pct to $4.61. Shares in gold miner Newcrest Mining (NCM) fell 0.2pct to $31.45 while Lihir Gold (LGL) was up 1.8pct to $2.84. Shares in Alumina (AWC) fell 0.9pct to $1.58 after posting a $26 million FY09 loss. However AWC has predicted the worst is over and that its 2010 aluminium demand is expected to rise by 10pct above 2009 levels.

In the retail space, shares in David Jones (DJS) added 2.8pct to $4.74 after the upmarket chain store owner announced a 2.3pct lift in 1H sales and upgraded its profit guidance for 2010. Rival Myer Limited (MYR) shares rose 1.9pct to $3.25 while Harvey Norman (HVN) was up 0.5pct to $3.71 and JB Hi-FI (JBH) rose 1.3pct to $19.32.

Shares in Singtel (SGT), the owner of the Optus network, rose 2.5pct to $2.43 after it reported a 16pct rise in 3Q profit. The carrier also dismissed rumours it was looking to sell the Optus business. Rival Telstra (TLS) fell 0.3pct to $3.35.

Other companies reporting today included Cochlear (COH), the hearing implant maker, and industrial firm Bradken (BKN). COH reported an 8pct lift in 1H profit to a record $75 million, above expectations, sending its share price up 3.5pct to $63.55. Shares in BKN rose 11.6pct to $6.53 despite the company reporting a 26.4pct 1H loss. However BKN indicated things should improve in 2H10.

No major economic data was released today and the Australian dollar finished the session marginally stronger against the major currencies. At 4pm AEDT the Aussie was worth US86.77c, £0.5555 and €63.36c.

On the market overall, a total of 2.74 billion shares were traded, worth $4.69 billion. 398 were up, 693 were down and 317 were unchanged.

At 4.30pm AEDT on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was unchanged at 4473.

Ahead tonight, Dow Jones components and economic bellwethers Coca-Cola and Walt Disney are due to report. US wholesale inventories figures for December are also slated for release.