Australian Stock Market Report - Closing
Local stocks closed in the red today, weighed down by concerns about foreclosures for US financial companies and the scrapping of a major joint venture by Australia's two largest listed mining companies. The All Ordinaries Index (XAO) eased by 34.8pts or 0.7pct to 4723.4 while the S&P/ASX 200 Index (XJO) fell 37.1pts or 0.8pct to 4651.9.
The materials sector fell 1.4pct, with shares in BHP Billiton (BHP) closing down 1.1pct to $41.18 on news it has walked away from its planned joint venture in the Pilbara with Rio Tinto (RIO). RIO shares eased by 0.3pct to $82.98. Early in the session, Fortescue Metals Group (FMG) was making gains, expected to be the main beneficiary of the scrapping of the deal. However FMG shares closed down 1.6pct to $6.31.
The price of gold ended Asian trade weaker, down 0.8pct to US$1361.30 an ounce. Shares in Newcrest Mining (NCM) finished down 2.7pct to $40.93.
Energy stocks also declined. The Nymex contract was lower at US$80.79 during Asian trade. Shares in Woodside Petroleum (WPL) shed 0.9pct to $43.94 while Santos (STO) was weaker by 0.5pct to $12.84 and Oilsearch (OSH) lost 0.9pct to $6.33.
Managed funds performed well, but the overall financial sector shed 0.6pct, weighed down by losses from the big four banks. Shares in Westpac (WBC) lost 1.3pct to $22.63 while the Commonwealth Bank (CBA) was down 0.9pct to $50.65 and the NAB (NAB) fell 0.7pct to $25.32. Shares in the ANZ (ANZ) eased by 1pct to $23.58.
Perpetual Limited (PPT) however rose 22pct to $37.80 on a non-binding $1.75 billion bid from private equity firm Kohlberg Kravis Roberts. Platinum Asset Management (PTM) rose 3.9pct to $5.03 while AMP Limited (AMP) was up 2.4pct to $5.49. AXA Asia Pacific (AXA) closed higher by 1.2pct to $5.22.
According to the Australian Institute of Petroleum the national average retail pump price rose 0.9 cents a litre last week to 123.6 cents a litre. Over the next fortnight CommSec expects pump prices to trend towards $1.25 litre, especially given that regional oil prices are holding near six month highs.
A CommSec fuel study has found that while pump prices have only recently started rising from 11 month lows, gross retail margins (difference between the terminal gate price and the pump price) have been rising steadily over the past year.
Australian new car sales recorded the first back to back monthly gains since the expiry of the tax break last year. Car sales rose by 0.9pct in September after a 0.2pct rise in August. Passenger car sales rose for the first time in five months, up by 1.6pct in September.
Sales of SUVs rose by 4.1pct in September. Over the past year more than 230,000 SUVs have been sold, the best result in records going back 16 years.
The Australian dollar briefly touched parity with the greenback on Friday night, but today lost momentum along with the share market. At 4.30pm AEDT the Aussie was worth US98.59c, £0.618 and €71c.
On the market overall, a total of 2.26 billion shares were traded, worth $4.04 billion. 485 were up, 642 were down and 361 were unchanged.
At 4.30pm AEDT on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was at 4655, down 47pts.
Ahead tonight, data on industrial production and capital flows are released.