Australian Stock Market Report – Afternoon September 10, 2014

A trader works by the post where Verizon is traded on the floor of the New York Stock Exchange in this file photo taken February 21, 2014. Verizon Communications Inc, the largest U.S. wireless telecoms company, reported a 6 percent rise in quarterly revenue as its postpaid wireless subscriber additions rose 53 percent, July 22, 2014. REUTERS/Brendan McDermid/Files (UNITED STATES - Tags: BUSINESS)

Sellers hit their stride

 Sellers weren't discerning when it came to a choice off sectors on Wednesday, that largely chose them all , with the exception of the technology group. Apart from that most sectors experienced a solid decline. The economic news of the day only added weight to the selling cause. Consumer sentiment, according Westpac and the Melbourne Institute, dived by 4.6% to 94.0 in September, to be 15.1% below the year ago level. Sentiment was mired well in negative territory (more pessimists than optimists) for the 7th consecutive month. Sentiment which appeared to be partially recovering in recent months after the substantial negative public reaction to measures announced in the Federal Budget in May, has stalled and gone into reverse in September. Consumers' ongoing anxiety about announced budget measures now appears to have been compounded by mounting fears about deteriorating economic and job conditions ahead after the unemployment rate spiked up to 6.4% in July - the highest level in 12 years. Consumer Discretionary stocks were targeted by sellers, although the losses were eclipsed by consumer staples owing to the fact that Woolworths (WOW) shares went ex-dividend by 72 cents, the shares ended with a loss of 82 cents or 2.25 per cent to $35.66 .

 Investors are taking a cautious approach towards commodity related stocks ahead of the US Federal Reserve meeting next week. Suggestions that the central bank could be more specific in relation to the timing of raising interest rates has seen the US dollar rally and put downward pressure on commodity process as a result. Energy stocks also ran into headwinds today after Brent crude oil fell to its lowest level in almost 17 months in the last day on surplus concerns after the EIA lifted its crude oil supply forecasts. These factors all played a part in mining and energy stocks losing ground over the session. Of the bulk miners Fortescue Metal Group stood out with a decline of 2.7 per cent bring the losses since the beginning of August to more than 20 per cent.

 Mining services group Worley Parsons (WOR) withstood the weaker tone across the market. WOR announced yesterday the acquired US-based hydrocarbons management consultancy MTG for an undisclosed sum. MTG provides operational advice to the oil, gas, petrochemical and chemicals sectors and has operations in

North America, the United Kingdom and Australia. Worley expects that MTG complement its existing advisory business Advisian.WOR ended flat at $15.91.

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