The Australian sharemarket lost ground, led by banks and miners, after China's latest growth numbers came in slightly weaker than expected.
The benchmark S&P/ASX200 index closed down 19.8 points lower, or 0.4 per cent, at 4442.6 points, while the broader All Ordinaries index was off 20.6 points, or 0.5 per cent, to 4456.7 points. The ASX200 had earlier been down 0.8 per cent.
Materials stocks fell 0.7 per cent while financials were off 0.6 per cent and industrials were 2.3 per cent higher.
What you need to know
- The Australian dollar sank to buy 88 US cents
- Asian stocks cut losses after China data lands
- Spot gold rose to $US1211
- Oil hovered at $US77.04 a barrel
- Dow futures were up 5 at 10,311 points
"The outlook from the Fed was weak and commodity prices were lacklustre. With such cues, the market took the path of least resistance, that is (to) slip down," David Taylor an analyst at CMC Markets said.
Shares in agricultural chemicals supplier Nufarm plunged 28 per cent following the company's profit downgrade after the market had closed on Wednesday. Nufarm shares lost $1.49 for the day to close at $3.75.
Intoll Group shares, meanwhile, soared about a third after the toll road owner received a $3.5 billion takeover bid from the Canadian Pension Plan Investment Board. Its shares ended up 33.5 cents, or 30 per cent, to $1.45.
Shares of other toll road companies rose, including ConnectEast Group, which added 2 cents, or 5.2 per cent, to 40.5 cents.
In overseas news, the Chinese government reported the country's economic growth slowed to 10.3 per cent in the June quarter, compared with forecasts of about 10.5 per cent. China's March quarter growth was 11.9 per cent.
Inflation in China eased to 2.9 per cent in June, while retail sales, the main gauge of consumer spending in the world's third-largest economy, rose 18.2 per cent in the first half of 2010, as compared with a year ago.
China's importance to Australia's economy was underscored in yesterday's budget update by federal Treasury. Australia's terms of trade - the relative prices of exports to imports - have risen 17 per cent in the past year, sending a jolt of extra money through the economy. That surge is expected to help create more jobs and bolster government revenues.
Miners, banks retreat
Among the major miners, BHP fell 27 cents to $38.13 and Rio Tinto dropped 77 cents, or 1.14 per cent, to $66.61.
Among the banks, Commonwealth Bank fell 16 cents to $51.33, ANZ sank 20 cents to $22.60, National Australia Bank dropped 29 cents to $24.51 and Westpac dropped 25 cents to $22.73.
NAB warned today that higher wholesale funding costs would be passed on eventually by all banks to maintain their financial strength.
Fortescue Metals Group unveiled a strong June production report, showing iron ore shipments jumped sharply compared with the same period last year. But its shares dropped 18 cents, or 4.11 per cent, to $4.20.
Gold hovers
At 1634 AEST, the spot price of gold in Sydney was $US1,209.50 per fine ounce, down $US4.53 from Wednesday’s close of $US1,214.03 but up from earlier in the day.
Newcrest Mining was 25 cents lower at $35.02, while Lihir Gold was four cents weaker at $4.32.
The most traded stock by volume at was Continental Coal, with 307.1 million securities changing hands for $17.5 million.
Continental shares were up 1.3 cents, or 29.55 per cent, at 5.7 cents.
Preliminary market turnover was 2.02 billion shares worth $4.02 billion, with 468 stocks up, 506 down and 352 unchanged.
On the Sydney Futures Exchange, the September share price index contract was 28 points lower at 4,417 points, with 24,933 contracts traded.
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AAP, with BusinessDay, Reuters