Market Reports Shares slump as growth fears reappear 4:16pm | Australian stocks fell today, with financials and miners dragging down the market after US stocks fell on fears relating to European
Forgot about the broader market today. Funny reading this on SMH - was that the same market we were in?
BANKS, MINERS DRAG AUSSIE STOCKS LOWER
By AAP | 08.09.2010 12:41 PM Australian stocks were lower at noon, with financials and miners dragging down the market and after US stocks fell on fears relating to European debt levels. At 1200 AEDT the benchmark S&P/ASX200 index was down 23.1 points, or 0.51 per cent, at 4,550.1 points, while the broader All Ordinaries index had fallen 22.5 points, or 0.49 per cent, to 4,590.5 points. On the Sydney Futures Exchange, the September share price index contract was 27 points lower at 4,550 on a volume of 15,138 contracts. CMC Markets analyst David Taylor said the share falls were unlikely to be caused by political factors in Australia, with the Gillard-led minority government preparing to govern. "The materials and financials were probably the worst hit, but it is largely due to general malaise rather than anything specific," Mr Taylor said. Wall Street was down overnight amid fears about European debt issues, and this was weighing on the local market, he said. "We have had a volatile ride over the last few months and there is no short-term end to that at this point," he said. Shares in Foster's Group were up sharply after it said it had received and rejected a non-binding proposal to buy its Treasury Wine Estates wine assets for $2.3 billion to $2.7 billion. At 1200 AEST, Foster's was trading up 29 cents, or 4.78 per cent, at $6.36. The big four banks were all lower at 1203 AEST, with Commonwealth Bank down 55 cents at $51.80, Westpac losing 36 cents to $22.67, National Australia Bank off 24 cents at $24.16 and ANZ 26 cents lower at $23.50. The materials sector was down about half a per cent, with market heavyweight BHP Billiton down 47 cents, or 1.22 per cent, at $37.97, and rival Rio Tinto falling 87 cents to $73.48. Overnight commodity prices and most metals prices were also lower. But the global uncertainty helped boost gold prices, which had risen to $US1,256.50 per fine ounce by 1203 AEST, up $US6.77 from Tuesday's closing price of $US1249.73 per ounce. Gold company Newcrest was up 88 cents, or 2.32 per cent, at $38.86 by at 1215 AEST. Shares in Sydney-based gold explorer Andean Resources had fallen 53 cents, or 7.53 per cent, to $6.51 after Canadian gold miner Eldorado Gold Corporation withdrew its bid for the company. Perth-based miner Mirabela Nickel revealed it was seeking to raise more than $US135 million ($A148.4m) through an institutional share placement and at 1221 AEST its shares were steady at $1.84. Cape Lambert Resources Ltd had fallen one cent, or 2.63 per cent, by 1222 AEST, to 36.5 cents, following news it had taken legal action to try and recover $80 million it says it is owed from the sale of a project in 2008. With oil prices retreating on Tuesday to $US74.09 per barrel, energy companies were mostly lower, although Oil Search was up one cent at $5.95 by 1226 AEST. Media stocks were having a poor morning's trade, with News Corp off nearly three per cent to $15.97 and Fairfax Media down three cents, or two per cent, at $1.455.
The top-traded stock by volume at 1229 AEST was Central Petroleum, with 107.13 million shares worth about $9.61 million changing hands. Its shares jumped 18 per cent, by 1.4 cents, to 9.0 cents.
Market turnover was 1.08 billion shares worth $2.25 billion, with 388 stocks up, 474 down and 347 unchanged.
