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Shares extend retreat on China news
November 10, 2010 - 4:34PM
(source:www.smh.com.au)

The Australian share market ended lower for a third consecutive day as economic news from China pulled markets down across the region.

The benchmark S&P/ASX200 Index ended the day down 40.9 points, or 0.9 per cent, to 4699.8 points, while the broader All Ordinaries Index lost 41.3 points, or 0.9 per cent, to 4779.5 points.

In China, house prices continued to rise - although at a slower pace - and the central bank moved to curb bank lending, according to a Reuters report.

On a sector-by-sector basis, gold stocks tumbled 2.5 per cent while materials were off 1.2 per cent, energy shares gave up 1.1 per cent and financials were lower by 0.6 per cent.

Need2know
The Australian dollar was buying 100.3 US cents
Spot gold was hovering at just below $US1400
Oil futures remained above $US86 a barrel
Dow futures were down 4 points to 11,309

In a late move just as the markets closed, the ANZ said it was raising its standard variable mortgage rates by 39 basis points, joining the Commonwealth Bank is lifting rates more than the Reserve Bank. The ANZ said it was also scrapping its $700 exit fee for mortgages.

CMC Markets market analyst David Taylor said Wall Street gave the Australian bourse a negative lead, but European equities and London metals markets all had solid sessions.

??Resources stocks have been under pressure in the wake of the Woodside sell-off, and the banks have had a bashing from the federal government,?? Mr Taylor said.

??Combine that with a natural hangover from the Feds (US Federal Reserve) quantitative easing announcement last week and further worries about Euro sovereign debt, and it?s not surprising the markets pulled back a little.??

Woodside was lower after oil prices dipped and Royal Dutch Shell sold a 10 per cent stake in the company earlier this week, closing 77 cents, or 1.79 per cent, weaker at $42.22 - just below Shell?s sale price of $42.23.

BHP Billiton and Rio Tinto were higher in early trade after silver and copper prices hit two-year highs overnight, but lost momentum to finish the session lower.

BHP Billiton was down 50 cents, or 1.12 per cent, at $44.14 while Rio Tinto backtracked 84 cents to $86.20.

Banks drop

Among the banks, ANZ was down five cents at $23.70, Commonwealth Bank was 17 cents softer at $48.08, National Australia Bank was 36 cents lower at $25.49 and Westpac was 15 cents weaker at $22.00.

Gold stocks lost ground after the price of the precious metal slipped from its record high of more than $US1420.00 an ounce on Tuesday in offshore trade.

The spot price of gold in Sydney at 1623 AEDT was $US1,398.30 per fine ounce, down $US14.65 from Tuesday?s local close of $US1,412.95.

Newcrest Mining finished $1.12, or 2.58 per cent, lower at $42.29 while fellow gold miner Kingsgate Consolidated ended down 28 cents, or 2.47 per cent, at $11.05.

Making headlines today, grains marketer AWB posted a net loss for fiscal 2010 of $54.9 million, as it prepared to be sold off to a Canadian suitor.

Shares in AWB were steady at $1.49.Shares in Qantas were up five cents, or 1.82 per cent, at $2.80.

Qantas was one of 11 companies fined a total of 800 million euros ($A1.1 billion) by the European Commission for co-ordinating action on surcharges for fuel and security between 1999 and 2006.

Swiss mining giant Xstrata edged closer to taking control of West Africa-focused iron ore explorer Sphere Minerals.

Shares in Sphere were up three cents, or 1.02 per cent, at $2.98, lower than Xstrata?s $3 per share bid.

Best, worst

The best performing stock in the S&P/ASX 100 index was mineral sands miner Iluka Resources, which ended up 32 cents, or 4.25 per cent, at $7.85.

The worst performing stock on that index was oil and gas producer AWE Ltd.

This was despite its joint venture partner Westralian Gas and Power saying it was encouraged by AWE?s shale gas finds in the Perth Basin announced yesterday.

AWE shares were down 11 cents, or 5.82 per cent, at $1.78.

The top-traded stock by volume was biotechnology firm Cellmid Ltd, with 107.64 million shares worth $6.14 million changing hands.

Its shares added 0.2 cents, or 3.85 per cent, to 5.4 cents after it said it had received several expressions of interest for the supply of its gold standard test for midkine measurement in blood.

Preliminary national turnover was 2.74 billion shares worth $5.93 billion, with 450 stocks up, 685 down and 369 unchanged.

Advertisement: Story continues below At 1617 AEDT, the December share price index futures contract was 42 points lower at 4,710 points, with 35,973 contracts traded.

AAP
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