Aust stocks close lower after US market falls
By Trevor ChappellThu Oct 1 19:09:06 EST 2009
Thu Oct 1 09:09:06 UTC 2009
MELBOURNE, Oct 1 AAP - The Australian share market closed lower on Thursday after a negative lead from United States markets.
The benchmark S&P/ASX200 index had fallen 42.5 points, or 0.9 per cent, to 4701.1, while the broader All Ordinaries index dropped 37.3 points, or 0.79 per cent, to 4702.0.
On the Sydney Futures Exchange, the December share price index futures contract was down 27 points at 4720, on a volume of 30,271 contracts.
"With light volume in Asian trade, it was bit like the (Australian) market was lost in the wilderness," CMC Markets market analyst David Taylor said.
"And despite some encouraging economic data coming from our shores, the market simply didn't like the weakness in the data from the US overnight."
The Australian Industry Group-PricewaterhouseCoopers performance of manufacturing index on Thursday showed that manufacturing activity expanded for a second straight month in September as the sector responded to government stimulus measures and low interest rates.
But data from the US showed a steep drop in private sector payrolls, which fueled jitters over the global economic outlook.
On the local market, in the resources sector, global miner BHP Billiton reversed 53 cents to $37.20 and Rio Tinto backtracked 34 cents to $58.90.
Oil and gas producer Woodside Petroleum lifted 26 cents to $52.39, Santos dipped two cents to $15.18 and Oil Search picked up five cents at $6.50.
The price of crude oil climbed more than five per cent overnight, up $US3.90 to $US70.61 a barrel, after a US government report said the country's gasoline stockpiles dropped unexpectedly and demand increased from last year.
Among gold stocks, Newcrest Mining added 68 cents to $32.58, Lihir was up nine cents at $2.89 and Newmont firmed five cents to $5.01.
The price of gold in Sydney was $US1006.95 per fine ounce, up $US10.18 on Wednesday's closing price of $US996.77.
Among the major banks, National Australia Bank was 39 cents poorer at $30.37, Westpac weakened 34 cents to $25.91, Commonwealth Bank retreated 85 cents to $50.90 and ANZ surrendered 29 cents to $24.10.
Investment bank Macquarie Group shed 97 cents to $57.82 after it said it would expand its North American and European financial services advisory business by buying a US-based firm for $US130 million ($A149.19 million).
Telco Telstra nudged up one cent to $3.28.
In the media sector, News Corp was off 29 cents at $15.80 and its non-voting scrip descended 36 cents to $13.47.
Fairfax lost 4.5 cents to $1.67 and Consolidated Media rose three cents to $3.00.
Retailer Woolworths was 15 cents richer at $29.40 and Wesfarmers, which owns Coles, was down 67 cents at $25.82.
Thorn Group Ltd, formerly Radio Rentals, was up 4.5 cents at 89.5 cents as it forecast its fiscal 2010 profit to increase by 18 per cent due to growth and a tax benefit.
Fastfood giant Domino's Pizza Enterprises was steady at $4.05 after it said its plans to expand its footprint in the "under-penetrated" cities of Sydney and Melbourne.
Among other stocks, asset management and inspection firm PearlStreet jumped 10.5 cents to 53 cents after Campbell Brothers pledged to launch a $42.1 million cash takeover bid for the company to expand its presence in the non-destructive testing market.
Campbell Brothers rose $1.56 to $31.15.
The top-traded stock by volume was oil and gas explorer Norwest Energy, with 163.42 million shares worth $6.3 million changing hands.
Norwest was 0.3 cents lower at 3.2 cents.
National turnover was 2.91 billion shares worth $4.39 billion, with 548 stocks up, 565 down and 322 unchanged.
On Wall Street overnight, the Dow Jones Industrial Average index was 29.92 points, or 0.31 per cent, weaker at 9712.28.
