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Aust stocks close lower
Published 10:16 AM, 23 Feb 2012 Last update 4:15 PM, 23 Feb 2012
QUICK SUMMARY | FULL STORY | FINANCIAL MARKETS
By a staff reporter, with AAP
The Australian sharemarket closed slightly lower, after Prime Minister Julia Gillard announced a ballot for the leadership of the Australian Labor Party early next week.
Former Foreign Minister Kevin Rudd has indicated he is willing to contest the leadership, which if successful would return him to the role of Prime Minister which he lost in 2010.
At the 1615 AEDT official market close, the benchmark S&P/ASX 200 index sank 0.16 per cent to 4,286.2 points and the All Ordinaries Index inched down 0.10 per cent to 4,367.5 points.
The resources sector weighed on the market, with the major miners slipping into the red.
BHP Billiton fell 0.49 per cent to $36.23, amid claims by workers at the group's Queensland coking coal mines that they plan to strike for another 10 days should the company refuse to return to the bargaining table.
Jobs could be under threat at BHP's Tasmanian manganese alloy plant as the mining giant undertakes a three-month review of the operation.
Rival Rio Tinto eased 1.48 per cent to $67.51, while Fortescue Metals slipped 1.62 per cent to $5.45.
Brazil's Vale, the world's largest iron ore miner, is looking for investments in Australia to cut down on shipping costs to Asia, according to reports.
lluka Resources dropped 3.27 per cent to $16.86, the group said it expects to post lower zircon and rutile production in 2012 despite posting a surge in annual profit and a huge final dividend.
Gold stocks ended higher as the price of the precious metal hit its highest point so far this year.
Eldorado jumped 1.46 per cent to $13.88 and Newcrest lifted 0.69 per cent to $36.10.
The financial sector declined, with the big banks moving into negative territory.
ANZ dropped 0.31 per cent to $22.07, Commonwealth Bank edged down 0.24 per cent to $49.52, National Australia Bank fell 1.02 per cent to $23.21 and Westpac fell 0.52 per cent to $20.66.
Investment bank Macquarie Group declined 1.97 per cent to $26.76.
In energy stocks, Origin Energy rose 1.88 per cent to $14.05, after reiterating its full year guidance following a swing to a big profit in the first half of the year.
Woodside lifted 3.30 per cent to $38.08, Santos fell 0.27 per cent to $14.27 and Oil Search grew 1.58 per cent to $7.07.
In insurance, IAG leapt 8.27 per cent to $3.14, after the group said it expects to post a full year insurance margin at the lower end of its guidance range following a slight fall in interim profit.
QBE slowed 0.77 per cent to $11.51 and Suncorp dropped 2.30 per cent to $8.06.
Perpetual edged up 0.25 per cent to $23.59, after the group said it would accelerate the progress of changes within the company following a drop in first half profit.
In the retail sector, Wesfarmers fell 0.41 per cent to $25.11 and Woolworths lifted 0.24 per cent to $25.01.
David Jones lost 0.77 per cent to $2.55 and Myer elevated 0.88 per cent to $2.29.
DJ's has reaffirmed its guidance of a 15 to 20 per cent drop in first-half profit, after posting a slide in second-quarter sales.
JB Hi-Fi was grew 0.76 at $11.86 and Harvey Norman declined 1.40 per cent to $2.11.
In the media sector, Fairfax fell 0.6 per cent to 82 cents, after outlining a three-year plan to reshape the business, following a heavily reduced first half profit.
Consolidated Media eased 1.43 per cent to $2.75, after blaming the challenging retail environment for a decline in first half profits.
APN News & Media rose 1.82 per cent to 83.5 cents, after the group said the advertising market in Australia and New Zealand remains mixed.
Ten Network gained 2.56 per cent to 80 cents, after Gina Rinehart, Lachlan Murdoch and James Packer suffered huge losses on their investments in Ten yesterday.
Blue chip Telstra declined 1.81 per cent to $3.25, while SingTel was flat at $2.30.
SingTel subsidiary Optus has filed for a court injunction against AFL chief executive Andrew Demetriou to stop him from commenting its broadcast content, according to reports.
Qantas lost 0.30 per cent to $1.66, while rival Virgin Australia jumped 6.84 per cent to 39 cents, after announcing it would restructure its business to stay in line with the government's international ownership conditions.
Orica lifted 0.53 per cent to $26.26, after its handling of a chemical leak was described as "grossly inadequate" in a scathing report by a NSW upper house inquiry.
Toll Holdings grew 2.69 per cent to $5.33, after declining to provide full year guidance in the wake of posting a slight fall in profit in the first half of the year.
Tatts Group lifted 1.2 per cent to $2.52, after the group said it expects to record a similar performance in the second half of the year following posting a jump in interim profit.
Austar United Communications jumped 1.23 per cent to $1.225, after the company said its subscriber base fell in 2011 due to greater competition in the market.
In economic news, a Reserve Bank of Australia official says the country is well placed to avoid a sub-prime housing crisis like the US crisis had in 2008 because of high-quality lending practices.
On Wednesday, the local sharemarket tracked sideways despite a string of solid earnings results and a deal being struck on a second Greek bailout.
The benchmark S&P/ASX200 index was up 1.9 points, or 0.04 per cent, at 4,293.1 points, while the broader All Ordinaries index edged up 3.9 points, or 0.09 per cent, to 4,372.1 points.
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