Market News

Aussie stocks close lower

15/10/2008 5:07:54 PM

(AAP) The Australian share market returned to the red today in sharp contrast to yesterday's euphoria but contained its losses to less than one per cent.

The domestic market took its downwards lead from a weaker Wall Street overnight and falls in resources stocks.

The benchmark S&P/ASX200 index was down 35.2 points, or 0.81 per cent, at 4,300, while the broader All Ordinaries index fell 39 points, or 0.9 per cent, to 4,272.5.

On the Sydney Futures Exchange at 1615 AEDT, the December share price index futures contract lost 42 points to 4,362 on volume of 41,311 contracts.

"After the gains we had over the last two days, we put in a pretty good performance today," ABN Ambro Morgans Brisbane director of equities Bill Chatterton said.

"Some of the financial are going better.

"People are being a little cautious about the resources sector of the market, but I think there is real value there."

Rio Tinto Ltd, the focus of a takeover proposal by BHP Billiton Ltd, said the long-term outlook for the company was positive despite the turmoil on financial markets.

Rio's global iron ore production rose by 17 per during the three months to September 30 compared with the same period in 2007.

Rio Tinto shares fell $4.30, or 5.19 per cent, to $78.50 and BHP Billiton closed $1.30, or 4.19 per cent, higher at $29.70.

Among the major banks, National Australia Bank sank 31 cents to $23.72, Commonwealth Bank dropped 80 cents to $43.75 and ANZ was five cents stronger at $18.20.

Westpac put on four cents to $22.70 while its takeover target St George Bank rose 42 cents, or 1.43 per cent, to $29.85.

In news today, creditors of failed stock lender Opes Prime Ltd today voted tO liquidate the company.

Iluka Resources Ltd gained 17 cents, or 4.61 per cent, to $3.86 after upgrading its profit outlook following a fall in the Australian dollar and rise in commodity prices.

Power supplier Origin Energy Ltd rose 25 cents to $15.75 after saying it expects a lift of up to 40 per cent in underlying earnings this financial year, boosted by its joint venture with ConocoPhillips.

Woodside Petroleum was $1.27, or 3.14 per cent lower at $39.15, Santos declined 60 cents, or 4.44 per cent, to $12.90 but Oil Search added 16 cents, or 4.19 per cent, to $3.98.

At 1626 AEDT, spot gold was trading in Sydney at $US844.15 an ounce, down $US1.25 on yesterday's close of $US845.40.

Among local gold stocks, Newcrest Mining dropped $1.64, or 6.15 per cent lower, to $25.01, Newmont Mining fell 16 cents to $4.61 and Lihir Gold lost three cents to $2.25.

In retail, Woolworths firmed 11 cents to $26.39, David Jones lost 10 cents to $3.12, and Coles owner Wesfarmers gained 33 cents to $22.68.

Among media stocks, Fairfax was down seven cents, or 3.07 per cent, to $2.21, News Corp increased 30 cents to $14.55 while its non-voting scrip rose 12 cents to $14.27.

Qantas added five cents to $2.69, while rival Virgin Blue fell two cents to 31.5 cents.

Telstra dropped 11 cents to $4.07 while rival Singapore Telecommunications lost 16 cents to $2.70.

The most traded stock by volume was GPT Group, with 35.33 million units changing hands worth $38.96 million.

GPT securities gained five cents, 4.76 per cent, to $1.10.

Preliminary market turnover was 1.24 billion shares, valued at $4.26 billion, with 463 stocks up, 571 down and 268 unchanged.

Wall Street shares dipped overnight after the jubilation faded from a massive rally the previous day as investors renewed their worries over the global credit crisis despite a stepped-up rescue plan.

The Dow Jones Industrial Average fell 76.62 points or 0.82 per cent to 9,310.99, giving back a portion of a whopping 936-point gain yesterday, which was the biggest point gain ever and largest percentage rise in 75 years.