Australian Stock Market Report - Closing

Local stocks fell into the red today, underperforming a stellar gain on London's FTSE Index and a quarter of a percent win on the Dow Jones Index. Mining and energy stocks were pulled down by weaker commodity prices while investors bailed out of the banks in afternoon trade. The All Ordinaries Index (XAO) fell 28.6pts or 0.6pct to 4820.9 while the S&P/ASX 200 Index (XJO) eased by 27.6pts or 0.6pct to 4714.9.

A number of economists have claimed the recent flooding in Queensland will halt the likelihood of a February rate hike, due to the impact on vital export industries such as mining and agriculture.

Despite the floods, insurance stocks fared better today, with Suncorp-Metway (SUN) rising 1.8pct to $8.50 and IAG (IAG) up 1.6pct to $3.88. Shares in QBE Insurance (QBE) added 0.5pct to $17.85.

The big four banks however dragged down the financial sector. Shares in the Commonwealth Bank (CBA) were the worst performing, down 1.2pct to $49.89 while Westpac (WBC) fell 0.2pct to $22.08 and the NAB (NAB) lost 0.7pct to $23.67. The ANZ (ANZ) fell 0.3pct to $23.18.

Energy players lost ground in response to the Nymex crude contract falling below US$90 a barrel. Shares in Oilsearch (OSH) fell 2pct to $6.88 while Caltex (CTX) eased by 0.8pct to $14.82.

Among the big miners, BHP Billiton (BHP) eased by 1pct to $45.01 while Rio Tinto (RIO) Lost 0.9pct to $85.07. Macarthur Coal (MCC), which has declared force majeure on its production in Queensland due to the floods, eased by 1.7pct to $12.65.

Shares in Beadell Resources (BDR) rose 10pct to $0.775 on a gold find, while a fall in the Comex gold quote saw Australia's largest gold producer Newcrest Mining (NCM) fall 1.7pct to $39.84.

Online travel service provider Webjet (WEB) rose 2.9pct to $2.49 after announcing a 15pct rise in ticket sales.

Elsewhere, Wesfarmers (WES) eased 2.1pct to $31.15 and Telstra (TLS) was slightly lower at $2.79.

In economic data today, new home sales eased by 0.2pct in November. Over the past seven months home sales have fallen by over 16pct. Private sector detached house sales declined by 1.1pct in November while sales of apartments increased by 8.1pct over the month.

The Australian dollar ended the day's trade at US100.15c, £0.6438 and €75.49c.

On the market overall, a total of 2.7 billion shares were traded, worth $4.3 billion. 432 were up, 702 were down and 376 were unchanged.

At 4.30pm AEDT on the ASX24, the futures contract was at 4713, down 23pts.

Ahead tonight, the ADP employment survey and ISM services report are schedules for release in the US.