Energy stocks, NewsCorp, drag on shares
The Australian share market rebuffed positive offshore leads to finish slightly lower as losses in energy and financial stocks and heavy falls in News Corporation weighed on a benign market.
At 1615 AEST, the benchmark S&P/ASX200 index was down 1.5 points, or 0.03 per cent, at 4,472 points, while the broader All Ordinaries index was 2.8 points, or 0.06 per cent, weaker at 4,539.9.
On the ASX 24, the September share price index futures contract was steady at 4,441 with 26,879 contracts traded.
A benign, sentiment-driven market continued to drive light trading volumes as Australian investors’ eyes remain fixed on European and US debt struggles and domestic economic issues, Shaw Stockbroking’s senior dealer, Jamie Spiteri, said.
“That’s reduced optimism across Australia and aided the uplift in the gold price globally,” he said.
The spot price of gold in Sydney was $US1,596.70 per fine ounce at 1615 AEST, up $US15.50 from Friday’s local close of $US1,581.20.
Gold major Newcrest Mining gained 14 cents to $40.41, while Kingsgate Consolidated surged 38 cents, or 4.42 per cent, to $8.98.
Deals in the materials and energy sectors, combined with the impact on News Corporation’s shares from the phone hacking scandal at the now defunct News of the World newspaper, dominated the market.
Shares in Rupert Murdoch’s News Corporation resumed their fall, losing 61 cents, or 4.13 per cent, to $14.16 while News’ non-voting scrip dropped 56 cents, or 3.91 per cent, to $13.76.
“It could go lower. It’s not their commercial management of the situation but their political management of the situation – that’s very hard to value,” Mr Spiteri said.
“It’s a significant setback to the global planning and the years of contraction that Murdoch has managed.
“From a commercial aspect, the grand plans are being destroyed by this battle (that) won’t go away in a hurry … and (Mr Murdoch) can no longer control.”
BHP Billiton’s shares closed down four cents to $42.85 after investors digested the miner’s $US12 billion acquisition of Petrohawk Energy.
“Some are considering that BHP may be overpaying for something which is not necessarily suitable to the make-up of BHP,” Mr Spiteri said.
“It seems that the views on BHP might be revised slightly down and greater preference given towards Rio Tinto.”
Rio Tinto added 24 cents to $81.60.
Woodside Petroleum’s share price also weakened as the market moved to discount any potential predatory move by BHP on Woodside.
Woodside lost 92 cents, or 2.35 per cent to $38.25.
Santos’ shares plunged 49 cents, or 3.7 per cent, to $12.74 on the company’s scrip bid for coal seam gas explorer Eastern Star Gas in a deal worth $924 million.
The big banks were mixed, and retailers were mostly lower, although David Jones finished unchanged at $3.15.
National turnover was 2.09 billion securities, worth $3.8 billion, with 509 stocks up, 572 down and 369 unchanged.
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