Australian stocks: ANZ result pushes market down

MELBOURNE - The Australian share market closed lower on Wednesday after a disappointing first half profit from the ANZ bank weighed upon the financial sector.

At the 1615 AEST close, the benchmark S&P/ASX200 index had fallen 13.1 points, or 0.35 per cent, to 3695.3, while the broader All Ordinaries dropped 9.8 points, or 0.27 per cent, to 3661.9.

On the Sydney Futures Exchange, the June share price index futures contract was 19 points higher at 3695, on a volume of 21,412 contracts, according to preliminary calculations.

City Index markets strategist Alex Douglas said fears over the swine flu outbreak and Japanese markets being closed for a public holiday had a minor negative effect on the local bourse.

The major impact on the Australian market was the ANZ result, with the bank reporting lower profits and bigger provisions for bad debts.

"The results from ANZ are probably the standout news for the day," Mr Douglas said.

Mr Douglas said the ANZ result, following the National Australia Bank's profit result on Tuesday where that bank also said bad debts were set to rise, made investors uneasy.

"All the banks have been dragged down by fairly large amounts," he said.

Among the major banks, ANZ was off $1.23, or 7.4 per cent, at $15.40 after it reported a sharp fall in first half profit and said tough market conditions would continue into fiscal 2010.

Commonwealth Bank retreated 97 cents to $34.51, Westpac reversed 85 cents to $18.85 and National Australia Bank fell 74 cents to $20.54.

In the resources sector, global miner BHP Billiton added 19 cents to $32.27 and rival Rio Tinto descended 25 cents to $61.35.

Fortescue Metals Group shed 10 cents to $2.32 as it slashed its annual iron ore sales and production forecasts after wet weather hampered its production ramp-up in the third quarter.

OZ Minerals improved 3.5 cents to 71 cents after the company said it should know within 48 hours whether bankers would extend its debt facilities.

Oil and gas producer Woodside Petroleum sagged eight cents to $37.39 and Santos was 14 cents richer at $16.46.

On Wall Street overnight, the Dow Jones Industrial Average index sagged 8.05 points, or 0.1 per cent, to 8,016.95 as worries about the spread of swine flu and a weak banking system offset a survey showing rising US consumer confidence.

In the gold sector, Newmont eased two cents to $5.76, Newcrest gave away 54 cents to $30.45 and Lihir put on five cents to $2.99. The price of gold in Sydney at 1623 AEST was US$895.75 per fine ounce, up 80 US cents on yesterday's close of US$894.95.

Telco Telstra was up four cents at $3.28 and Optus owner Singapore Telecommunications gained two cents at $2.35.

Among media stocks, News Corp picked up 18 cents at $12.10 and its non-voting stock strengthened 10 cents to $10.72.

Consolidated Media nudged up one cent to $2.11 and Fairfax advanced four cents to $1.11.

Retailer Woolworths ascended 30 cents to $26.65 and Wesfarmers, which owns Coles, rose 62 cents to $21.83.

Among other stocks, Macquarie Airports slipped two cents to $1.75 as it reported a fall in first quarter earnings due to a massive drop in passengers, mainly at its European airports.

Casinos operator Crown was up three cents at $6.45 after it bought more shares in its joint-venture casino operator and developer in Macau and expressed confidence in the growth outlook.

Consumer products marketer McPherson's soared 42 cents to $1.10 after it said sales had been strong and expected an annual result at the top end of its guidance range.

Online wagering and gaming company Centrebet International jettisoned 10 cents to $1.20 after it downgraded its net profit forecast due to a fall in on-course racing revenues and flat European trading.

The top-traded stock by volume was Babcock & Brown Infrastructure, with 82.6 million shares worth $7.87 million changing hands. Babcock & Brown Infrastructure firmed two cents to 10.5 cents.

Preliminary national turnover was 1.79 billion shares worth $3.91 billion, with 492 stocks up, 416 down and 311 unchanged.

- AAP