Heavyweight banks drag down Australian bourse
The Australian share market was down in intra-day trading by noon, but recovered from lows of the session, thanks to earnings results.
At midday (AEST), the benchmark S&P/ASX200 index shed 35.6 points or 0.8 per cent at 4424.0 points. The broader All Ordinaries index, meanwhile, fell 31.2 points or 0.7 per cent to 4449.7.
On the Sydney Futures Exchange, the September share price index contract lost 28 points at 4402 points, with 15,3036 contracts traded.
The heavyweight banks and big resources stocks pulled the overall market lower, according to Marcus Padley, Patersons Securities analyst and publisher of the Marcus Today daily stockmarket newsletter.
"The banks have basically knocked about 20 points off the index on their own, BHP and Rio another 10 points," he said.
Commonwealth Bank and AXA Asia Pacific Holdings began trading without a dividend, with CommBank $1.74 or 3.38 per cent lower at $49.74. AXA slid to $5.47, a decrease of 13c or 2.32 per cent.
BHP Billiton lost 55c, or 1.36 per cent, at $39.85. Rio Tinto plunged 77c or 1.08 per cent to $70.66.
Mid-cap resources stocks were inverting Friday's solid gains, said Mr Padley.
"There was something odd on Friday," he said.
"All the mid-cap resources went up enormously - it was almost like some fund just dumped money into the market and there was no explanation at all."
"Panoramic Resources (was) up 12 per cent (on Friday). It's down 6 per cent today."
"Otherwise (earnings) results today are okay. The name of the game in the market at the moment is avoiding all the bombs going off rather than trying to make money after Computershare, James Hardie and Telstra last week."
Shares in BlueScope Steel, Centennial Coal and Leighton Holdings increased after the release of earning results.
BlueScope gained 7c or 3.02 per cent to $2.39. It announced a net profit of $126 million for financial 2010 from a $192 million loss the previous year.
Centennial Coal added 2c to reach $6.06 even though net profit in 2009/10 showed.a 28 per cent fall. The company, however, said it projects exports to grow in the current year.
Leighton Holdings climbed $1.59 or 5.5 per cent to $30.49. It posted a 39 per cent swell in annual profit and expected further expansion as economic conditions improve.
Oil stocks improved, with Oil Search adding1c to $5.85 and Woodside Petroleum gaining $1.19, or 2.87 per cent, at $42.70.
Gold shares tracked higher, with Lihir Gold firming 7c or 1.62 per cent to $4.38. Newcrest Mining increased 57c or 1.64 per cent at $35.27.
Lend Lease edged up 7c to $7.16 after posting a rise in profits.
Major retailers Woolworths and Wesfarmers recuperated after opening in the red, with Woolworths climbing 3c to $26.77 and Wesfarmers adding 8c at $31.04.
Sigma Pharmaceuticals improved 1c to 51c after declaring it had agreed to offload its pharmaceuticals division to Aspen Pharmacare Holdings Ltd for $900 million.
Telstra increased 1c to $2.93, although Singapore Telecommunications, owner of Optus, plunged 3c, or 1.21 per cent, to $2.44.