Australian Stock Market Report – Afternoon 10/12/2011

AFTERNOON REPORT (4.30pm AEDT)

The recent rally on the share market came to an end today, with the share market posting its first loss in six sessions. The All Ordinaries Index (XAO) eased by 22pts or 0.5pct to 4266.4 while the S&P/ASX 200 Index (XJO) fell 23.3pts or 0.6pct to 4204.3. The XAO gained 8.9pct between last Tuesday and yesterday's close.

Third quarter US reporting season kicked off after the bell on Wall Street, with aluminium giant Alcoa missing expectations. Alumina (AWC), which has a 40pct interest in Alcoa, fell 2.5pct to $1.555 on the local market.

The materials sector as a whole dropped 1pct. Shares in index leader BHP Billiton (BHP) eased by 0.8pct to $37.08 while Rio Tinto (RIO) was lower by 0.8pct to $67.46. Iron ore miner Fortescue Metals Group (FMG) finished lower by 1.9pct to $4.72.

Energy players also retreated after several sessions of gains. Woodside Petroleum (WPL) fell 0.7pct to $35.36 while Oilsearch (OSH) was down 1.8pct to $5.95.

The financial sector closed down 0.3pct while there were wins from Woolworths (WOW) in the consumer staples sector and Qantas (QAN) in the industrials space. WOW added 1.2pct to $24.92 while QAN was firmer by 0.3pct to $1.555.

In economic data released today, the number of new owner-occupier housing loans rose by 1.2pct in August after rising by 1.9pct in July. The number of loans is 6.2pct higher than a year ago.

Loans for the purchase of newly erected dwellings rose by 6pct and are now up 2.6pct on a year ago. Loans for the construction of homes rose by 0.8pct in August, but still remained below the decade average of 4,900.

The Westpac/Melbourne Institute index of consumer confidence rose by 0.4 per cent in October to a reading of 96.9. Talk of a rate cut boosted our moods, however sentiment levels are down 16.9pct on a year ago due to unsettled financial markets.

The Australian dollar ended the day's trade at US99.38c, £0.6375 and €72.89c.

On the market overall, a total of 1.6 billion shares were traded, worth $4.45 billion. 388 were up, 541 were down and 339 were unchanged.

At 4.30pm AEDT on the ASX24, the futures contract was at 4213, down 25pts or 0.6pct.

PepsiCo reports earnings before the bell in the US tonight, while Universal Forest reports after the close. The mortgage market index is also released..

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