Australian stocks lost ground today after a negative lead overnight and as commodity prices declined, dragging down local resource stocks. Bank stocks also eased today.
The S&P/ASX 200 Index closed 77 points weaker at 4,754 while on the futures market, the SPI200’s down 76.
In economic news, the quarterly National Australia Bank’s survey of business confidence rose 20 points to 16 points in the September quarter. The result was the highest in more than seven years. NAB also said that business conditions rose 14 points to 3 due to rising sales and profits.
To company news around this afternoon: WorleyParsons (ASX:WOR) reported first quarter earnings that were weaker than expected and said that first half profit would be well below the same period a year ago. The mining and energy services group also said the strong Aussie dollar could shave between $35 and $40 million from its 2009/10 full year net profit and WorleyParsons shares declined 8 percent to $26.68.
Transurban Group (ASX:TCL) said at its annual general meeting today that traffic and revenue has increased on all its toll roads this financial year. Toll revenue increased 6.8 per cent in the 2009/10 first quarter compared to a year ago. Chairman David Ryan said it was an excellent result and a promising start to the year but Transurban shares fell 1.14% to $4.34 today.
Also making news: Shares in building materials group James Hardie Industries (ASX:JHX) headed lower today on a report overnight that said a U.S. home-buyer tax credit may not be extended which could cause house building demand to soften. James Hardie earns significant revenue from the U.S. market.
Billabong International (ASX:BBG) reaffirmed its earnings guidance and said it expects a strong second half net profit due to cost cutting and stronger foreign currency hedge rates. The surf wear company expects earnings growth of 5 percent in constant currency terms for the 2009/10 financial year.
Stories covered in our earlier reports: Investment bank Macquarie Group (ASX:MQG) shares declined as it announced plans to buy Canadian based Blackmont Capital for $88.6 million to expand its wealth management business and product portfolio in Canada.
ING Industrial Fund (ASX:IIF) launched a rights issue to raise up to $700 million selling new shares at a 20 percent discount to its last traded price.
In the best and worst performers: The only positive sector at the close was the Telecommunications index, up 14 points at 1,117. The worst performing by percentage points was the Real Estate Investment Trust index; which lost 35 point to 888.
The best performing stock in the S&P/ ASX200 was Wotif.com Holdings and shares rose 3.14 per cent to $5.92. Shares in Karoon Gas Australia and Emeco Holdings also gained.
The worst performing stock was Worley Parsons as its earnings results missed expectations. Mt Gibson Iron and St Barbara shares also closed lower today.
In commodities, gold is trading at $1,042.85 U.S an ounce and light crude is up 13 cents at $78.81 U.S a barrel.
