Aust stocks close lower amid negative sentiment
11 Nov 2008 5:41 PMBy Ben Sharples
MELBOURNE, Nov 11 AAP - The Australian stock market closed 3.5 per cent lower today, sharply reversing its gains of yesterday, as renewed fears of global recession and a domestic slowdown weighed on the local bourse.
The benchmark S&PASX200 index was 146.9 points, or 3.58 per cent lower at 3960.9, while the broader All Ordinaries lost 138.2 points, or 3.4 per centto 3921.8.
At the close of day trading on the Sydney Futures Exchange, the December share price index contract was 105 points lower at 3993, on a volume of 32,579 contracts.
CMC Markets senior dealer Dominic Vaughan said the local market was plaguedby a combination of negative global sentiment, expectations Australia was heading into a recession and thin trading volumes.
"There's a whole lot of negative sentiment still, and there's talk a recession in Australia is unavoidable, how deep it is we're not really sure," Mr Vaughan said.
"There were falls right across the board today, even the healthcare centre,which is normally relatively resilient, has come under pressure.
"On top of that, volumes are very thin and that's exacerbating these price movements."
The market opened almost three per cent lower after a fall on Wall Street overnight, with the Dow Jones industrial average dropping 73.27, or 0.82 percent, to close at 8,870.54.
Locally, the banking sector was weaker, with Commonwealth Bank giving up2.39, or 6.29 per cent, to35.61 and National Australia Bank falling $2 to $20.15 after its trading halt was lifted following its3 billion capital raising at20 a share yesterday to institutional investors.
ANZ retreated 22 cents to15.68 and Westpac shedded 61 cents to $19.30.
Insurance Australia Group dipped four cents to3.97 after it said that gross written premium growth would be flat to two per cent higher.
Computershare lost 61 cents, or 7.83 per cent, to7.18 after the world's largest share registry cut its earnings guidance this financial year becauseof the stronger US dollar.
The stapled securities of Asciano Group fell almost 60 per cent to 69 centsbefore the transport infrastructure called for a trading halt ahead of a possible capital raising or partial asset sale.
The retailers were weaker, with Woolworths falling 53 cents to28.65, Wesfarmers shedding2.87, or 12.48 per cent, to $20.13, Harvey Norman losing six cents to2.83 and David Jones retreating two cents to $3.15.
Health IT company IBA Health Group gave up half a cent to 64 cents despite the group saying its revenues would more than double after the launch of its new healthcare IT platform Lorenzo.
The media sector was mixed, with Consolidated Media Holdings losing five cents to2.10, News Corp falling 24 cents to $12.40 buts its non-voting shares added 12 cents to12.70 and Fairfax dropped 12.5 cents to $1.745.
The energy sector was mixed, with Oil Search adding six cents to4.99, Woodside falling1.21 to $40 and Santos giving up 71 cents to $13.63.
The big miners were weaker, with BHP Billiton falling1.09 to $28.80, Rio Tinto shedding1.51 to $76.49 and Fortescue Metals losing 17 cents, or 6.94 per cent, to2.28.
The spot price of gold was lower and closed in Sydney trading atUS746.10 an ounce, downUS1.05 on yesterday's local close of $US747.15 an ounce.
The gold miners were mixed, with Newmont adding 12 cents to4.01, Newcrestgiving up1.06 to $22.13 and Lihir retreating 10 cents to $2.01.
GPT Group was the most traded stock by volume, with 148.1 million shares changing hands, worth139.9 million.
The property group gained 5.5 cents to close at1.05.
Market turnover reached 1.26 billion, worth3.74 billion, with 272 stocks up, 683 down and 285 unchanged.
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