Close Australian stocks fell today, their first clear loss in seven days, with both banks and miners dragging on the main indexes.
At the close, the benchmark S&P/ASX200 index was down 31.7 points, or 0.7 per cent, at 4527.3, while the broader All Ordinaries index fell 25.1 points, or 0.5 per cent, to 4547.
Among major sub-indexes, financials were down 1 per cent, materials lost 0.8 per cent and energy shares fell 0.6 per cent.
Dollar declines
The dollar declined for a second day on lower volumes as investors wait for further clarity to emerge about the sovereign debt situation in Europe. At the local close, the dollar was trading at $US0.8604, down 0.5 per cent from Wednesday’s close of $US0.8648. It was also buying 78.57 yen and 70.13 euro cents.
Asian shares fell and the euro slipped as short covering rallies ran out of steam, but some analysts said global markets may have finally found support after a heavy selloff in May.
‘‘We're much happier over here in Asia, but we don't live in our own world," said Nicholas Yeo, head of China/HK equities at Aberdeen Asset Management. "What happens in the West will affect Asia."
Oil, which has been tracking moves in the euro and stock markets, fell back from a six-week high, while gold, which tends to gain from falling sharemarkets due to its safe haven appeal, firmed to near its highest in a week.
Absence of leads
Shaw Stockbroking senior dealer Jamie Spiteri said there was an absence of offshore leads for the local market as US and European markets consolidated.
‘‘There’s not much driving the market and the resources stocks and banks have been drifting back after recent solid performances in recent days,’’ he said. ‘‘We had index expiry today which inflates the volumes that have gone through the market.’’
Global mining giant BHP Billiton lost 41 cents to $38.82 and rival Rio Tinto fell $1.27 to $70.07.
Commodity prices were steady in overnight trade, Mr Spiteri said. '‘Some of the gold stocks are better.’’
Lihir Gold added 5 cents, or 1.2 per cent to $4.26 while Newcrest Mining gained 48 cents, or 1.4 per cent, to $34.64.
Banks lose ground
Australia’s major lenders lost ground with National Australia Bank leading the sector lower and closing down 31 cents, or 1.2 per cent, at $24.80.
Westpac fell 26 cents to $23.26, ANZ lost 23 cents to $22.95 and Commonwealth Bank backtracked 48 cents to $52.50.
QBE Insurance fell 27 cents, or 1.4 per cent, to $18.68 after briefing the market in London on Wednesday night and disclosing that its full year profit result would be at the lower end of expectations.
Most retailers lost value with the exception of consumer staple Woolworths, which gained 10 cents to $27.80.
Department store owner Myer fell 3 cents, or 0.9 per cent, to $3.17 and David Jones eased 2 cents to $4.51.
Fairfax Media fell 3 cents, or 2 per cent, to $1.47 and News Corp gave up 19 cents to $18.47. News’ non-voting scrip dropped 6 cents to $16.24.
Leighton jumps
In news, Leighton Holdings jumped 70 cents, or 2.2 per cent, to $33.01 after the mining services company said it had won $1.5 billion worth of contracts in Australia and Indonesia.
Shares in oil and gas minnow Amadeus Energy soared by 6 cents, or 32.4 per cent, to 24.5 cents after the company revealed it is the target of multiple takeover moves from US companies.
Trafford Resources eased 1 cent to 51 cents after announcing plans to sell about $3.75 million in new shares to fast track a South Australian iron ore project.
Gold producer Stirling Resources stock slumped 1.2 cents, or 12.3 per cent, to 8.5 cents. Stirling subsidiary Swan Gold Mining said it had shelved two gold projects slated to go into production in August because the proposed resources super profits tax prevented it from raising equity.
Shares in Environmental Clean Technologies surged 1.9 cents, or 63.3 per cent, to 4.9 cents after it said it expected to sign a deal to export as much as $1.5 billion worth of coal to Vietnam each year.
ECT was the top traded stock by turnover, with 219.6 million shares traded for a value of $8.6 million.
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BusinessDay, with wires