Update Australian shares resumed their recent retreat with bank and miners leading the way lower. Positive results from some of the larger companies helped to pare the day's losses.
By the close, the benchmark S&P/ASX200 index was 21.1 points lower, or 0.5 per cent, at 4438.5 points, while the broader All Ordinaries index lost 15.5 points, or 0.35 per cent, to 4465.4.
On a sector-by-sector basis, financials lost 1 per cent, while materials gave up 0.4 per cent. Energy stocks advanced 0.7 per cent.
What you need to know
- The Australian dollar was buying 89.4 US cents
- Asian stocks slide after Japan's growth fizzled
- European stocks were up 0.5% in early trade
- Spot Gold hovered at $US1219 an ounce
- Oil edged higher to $US76 a barrel
- Dow futures were up 42 points at 10,308
- Wall Street Week Ahead: What's in store
- US economy preview: what's coming up
- Australian diary: calendar of next week's events
Results from BlueScope Steel, Centennial Coal and Leighton Holdings earlier moved those stocks higher. Bluescope gained 7 cents for the day, or 3 per cent, to $2.39, while Leighton shares jumped $1.70, or 5.9 per cent, to $30.60 despite on-going questions about the succession plans of chief Wal King.
Centennial, though, gave up its gains to end the day off 1 cent, or 0.2 per cent, to $6.03.
Most companies were reporting results in line with expectations or slightly above or below, said Ord Minnett's investment adviser Francesco De Stradis. ''Anyone that misses their guidance is going to get caned,'' he said, adding ''The market is focusing on the outlook commentary.''
In other corporate news, Sigma Pharmaceuticals firmed 2 cents, or 4 per cent, to 52 cents after announcing it had agreed to sell its pharmaceuticals division to Aspen Pharmacare Holdings for $900 million.
Shares in AWB rocketed 32.5 cents higher, or 30%, to $1.42 the company received an unsolicited $1.23 billion takeover offer from Canada-based company Agrium Inc. Rival bidder for AWB, GrainCorp also rose, adding 26 cents, or 4.2 per cent, to $6.53.
Gunns added half a cent, or 0.8 per cent, to 62 cents despite warning it will post a 50 per cent drop in annual net profit due to impairments. It is also selling its Tamar Ridge wineries to Brown Brothers for $32 million.
CBA, miners
Commonwealth Bank and AXA Asia Pacific Holdings dragged down the financials index after they traded without a dividend.
The bank's shares closed $1.73, or 3.36 per cent, lower at $49.75, while AXA APH fell 15 cents, or 2.68 per cent, to $5.45.
BHP Billiton and Rio Tinto traded lower throughout the session, with BHP closing down 40 cents, or 0.99 per cent, at $40.00 and Rio Tinto easing 61 cents, or 0.85 per cent, to $70.82.
Newcrest’s shares closed up 50 cents, or 1.44 per cent, at $35.20 after reporting a surge in profit.
Woodside spurs energy stocks
The oil sector shone brightly as most other sectors struggled, with Woodside Petroleum gaining $1.59, or 3.83 per cent, to $43.10 after investors digested its announcement of a gas discovery offshore from Western Australia.
Santos pared back early losses to finish one cent firmer at $13.98, and Oil Search added four cents to $5.88.Gold stocks held on to early gains throughout the day, with Lihir Gold gaining five cents, or 1.16 per cent, to $4.36.
The spot price of gold in Sydney gained steadily throughout the session, and was trading at $US1,220.30 per fine ounce by 1629 AEST.
That was up $US3.00 from Friday’s closing price of $US1,217.30.Consumer staples shrugged off early losses to move into positive territory.
Retailers, media
Woolworths firmed two cents to $26.76 and Westfarmers climbed 11 cents to $31.07.
Department store owner David Jones also reversed early losses, closing four cents higher to $4.87 two days ahead of releasing its June-quarter sales report.
Telstra added two cents to $2.94 and Singapore Telecommunications, owner of Optus, fell five cents, or 2.02 per cent, to $2.42.
Media stocks stayed in negative territory throughout the trading session.
Fairfax eased two cents to $1.43, while News Corporation dropped 24 cents, or 1.45 per cent, to $16.34.
News’ non-voting scrip fell 36 cents, or 2.41 per cent, to $14.55.
Airlines also faced turbulence, with Virgin Blue Holdings easing one cent to 29 cents after announcing plans to drop its New Zealand routes while bigger rival Qantas Airways lost six cents, or 2.38 per cent, to $2.46.
AWB was the top traded stock by turnover, with more than 90.8 million shares traded for $129.3 million.
Preliminary national turnover reached 1.87 billion shares, worth $4.6 billion, with 493 stocks trading up, 511 down and 326 unchanged.
At 1615 AEST on the Sydney Futures Exchange, the September share price index contract was 15 points lower at 4,415 points, with 28,139 contracts traded.
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Earlier making news
A central figure in investigations into offshore tax schemes has lost a key court battle in attempt to stop authorities extraditing him to Australia to face fraud charges.
Qantas is expected to merge the freight ventures it has with Australia Post in an effort to slash costs and turn around their performances over past two years.
The spotlight may be on politics, but the property market hasn't strayed far from the action after a record-breaking eight months.
And companies should be forced to disclose the big winners from capital raisings after a report found nearly half of the money raised in the aftermath of the financial crisis did not give existing shareholders the chance to take part.
Plus, Ross Gittins on the need for transparency on political costings, Adele Ferguson on Foster's and Barry FitzGerald's Garimpeiro column.
AAP with BusinessDay