Australian stock market closes lower as investors fear economic impact of floods

Australian stocks closed slightly lower on Tuesday, with investors targeting defensive stocks due to concerns over the economic impact of the Queensland floods.

The benchmark S&P/ASX200 index was down 1.6 points, or 0.03 per cent, at 4,710.7 points, while the broader All Ordinaries index had lost 3.8 points, or 0.08 per cent, at 4,814.9 points.

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On the ASX 24, the March share price index futures contract was one point higher at 4,703 points, with 18,344 contracts traded.

Several resources stocks and companies with significant exposure to Queensland, most notably Suncorp Group, were the worst performers in the session as that state's flood crisis spread to Brisbane.

Shares in Suncorp, a Brisbane based insurer, lost 31 cents, or 3.65 per cent, to $8.19.

It has received around 2,500 claims from customers impacted by the central Queensland floods, but says it is too soon to assess its total financial exposure to the worsening disaster.

Shares in Insurance Australia Group (IAG), which owns the NRMA Insurance and CGU units, dropped five cents to $3.84, while QBE Insurance gained 14 cents to $18.14.

In the resources sector, BHP Billiton added 16 cents to $44.61 and Rio Tinto lost 24 cents to $84.12.

Among the smaller players, OZ Minerals lost 6.5 cents to $1.635 and Fortescue dropped six cents to $6.49.

New Hope Corporation lost 13 cents to $4.92 after becoming the latest miner to suspend operations at both of its Queensland mines, while Whitehaven Coal dropped 12 cents to $6.68.

The financial sector was mixed. ANZ was the worst performer, down 13 cents to $22.83, while Westpac lost one cent to $22.06, National Australia Bank gained 10 cents to $23.89 and Commonwealth Bank lifted 25 cents to $50.30.

Bank of Queensland lost 16 cents to $9.98.

Among the best performing stocks were Telstra, which gained six cents to $2.84, and Cochlear rose by $1.97 to $80.78.

The spot price of gold in Sydney was $1,375.80 per ounce, up $1.77 on Friday's close of $1,374.03.

Newcrest Mining lost 34 cents to $38.50.

The most traded stock by volume was pharmaceuticals marketer Stirling Products, with 140.9 million shares changing hands for $1.34 million.

Stirling Products shares gained 0.2 cent, or 29 per cent, to 0.9 cent.

Preliminary national turnover was 2.74 billion shares worth $4.18 billion, with 483 stocks up, 630 down and 403 unchanged

The Australian dollar fell to its lowest level in almost a month against the U.S. greenback on Tuesday as authorities warned that massive floodwaters in the state of Queensland were now threatening one of the country's biggest cities.

Weeks of heavy rains and flooding have already taken a heavy economic toll on Queensland and its booming coal mining industry, with roughly 10 billion Australian dollars in clean up and lost revenue forecast by government leaders.

On Tuesday, Australian authorities warned the death toll from the floods could increase dramatically, while adding the floods are threatening the state capital of Brisbane, a city home to about two million people and the base of several financial firms, including Suncorp Group Ltd.

The Australian dollar traded at $0.9850, down from $0.9960 late Monday but slightly above its intraday low of $0.9839.

The currency hasn't been this low against the U.S. dollar since Dec. 17, when it reached $0.9833.

Against the Japanese yen, the Australian dollar recently changed hands at 81.745, down from 82.755 late Monday.

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