Aust stocks firmly in the red despite interest rate cut=3D2
02 Dec 2008 4:41 PM
INDEX MOVEMENT POSITION INDEX MOVEMENT POSITION
S&P/ASX200 -153.0 3528.2 Dow Jones -679.95 8149.09
All Ords -145.6 3473.4 S&P 500 -80.03 816.21
SPI contract -143.0 3538.0 Nasdaq -137.50 1398.07
Gold $USoz -40.75 771.95 Nikkei -415.15 7982.07
$A/USD -.0066 0.6402 NZSE-50 -31.783 2651.145
PERTH, Dec 2 AAP - A rate cut by the central bank failed to stem falls on the Australian share market, which closed four per cent lower after taking its cue from weaker global bourses.
The benchmark S&P/ASX200 index was down 153 points, or 4.16 per cent, at 3,528.2, while the broader All Ordinaries index shed 145.6 points, or 4.02 per cent, to 3,473.4.
On the Sydney Futures Exchange at 1618 AEDT, the December share price index contract was down 145 points at 3,536 on a volume of 36,147 contracts.
CommSec market analyst Juliette Saly said the local bourse opened firmly in the red after heavy falls on Wall Street overnight as US investors made off with profits following last week's rally.
Australians woke to news the US economy has been in recession since December 2007.
"Today's one per cent interest rate cut (by the Reserve Bank of Australia) didn't do anything to boost the market, which actually fell further into the red from where we were ahead of the rate decision," Ms Saly said.
"We've lost a fair bit of that momentum that we gained towards the end of last week, but certainly not dipping near that level of 3,200 points, which we touched about a fortnight ago."
Commonwealth Bank and National Australia Bank were the first to pass on the rate cut by the full percentage point decrease. Westpec cut its rates by 0.8 of a percentage point.
Commonwealth Bank slumped $1.75, or 5.3 per cent, to $31.25, NAB fell 71 cents, or 3.65 per cent, to $18.72, ANZ declined 43 cents, or 2.99 per cent, to $13.95 and Westpac was down 84 cents, or 4.96 per cent, at $16.10.
Ms Saly said the mining sector weighed heavily on the domestic market after a huge fall in commodity prices overnight.
BHP Billiton shares plunged $2.87, or 9.6 per cent, to $27.03 and its rival Rio Tinto sunk $3.70, or 8.67 per cent, to $39.00.
"Fortescue Metals Group had an interesting day, starting in the red then rallied on more takeover speculation involving potentially BHP or a Chinese firm," Ms Saly said.
Fortescue's shares were steady at $2.50 on heavy trading volumes.
Stock Move Price
AMP -0.030 5.240
ANZ Bank -0.430 13.950
BHPBilton -2.870 27.030
CBA -1.750 31.250
NAB -0.710 18.720
NewsCorp -0.330 11.770
Polartech - .094
Rio Tinto -3.700 39.000
TelstraCp +0.090 4.140
WestpacBk -0.840 16.100
Woolwrths -0.400 26.900
MORE rlm/jmc
Ms Saly said retail stocks were mixed, with upmarket department store chain David Jones up 13 cents to $2.70 and furniture retailer Nick Scali steady at 50 cents.
Woolworths lost 40 cents to $26.90, Wesfarmers fell $1.04, or 5.49 per cent, to $17.90 and Harvey Norman slipped two cents to $2.13 after reporting that written sales for the four weeks ended November 30 rose by half a per cent, up from the same period last year.
At 1623 AEDT, spot gold in Sydney was trading at $US771.60 an ounce, down $US41.10 on Monday's Sydney close of $US812.70.
Among gold miners, Newcrest dipped eight cents to $25.76, Newmont dropped 36 cents, or 7.19 per cent, to $4.65 after going ex dividend and Lihir Gold inched two cents higher to $2.30.
Making headlines today, Waratah Coal has accepted a revised $125 million takeover offer from Mineralogy Pty Ltd, which is owned by billionaire Clive Palmer.
Waratah's shares jumped 40 cents, or 30.77 per cent, to $1.70.
Market analysts say the biggest challenge facing agribusiness and automotive parts supplier Futuris Corporation during its restructure will be exiting its non-core assets.
Shares in Futuris were down 2.5 cents to 76 cents.
Oil and gas minnow incremental Petroleum says it will soon respond to an $83.7 million takeover bid by its joint venture partner in Turkey, Texan oil explorer TransAtlantic Petroleum Corporation.
Shares in Incremental were down half a cent to 99.5 cents.
Among major energy stocks, Woodside Petroleum plunged $3.79, or 10.47 per cent, to $32.14, Santos fell 39 cents, or 2.71 per cent, to $14.00 and Oil Search shed 42 cents, or 9.03 per cent, to $4.23.
