U.S. Decline Damps Market
May 08, 2011
The All Ordinaries index of share prices fell 10.8 to 2282.1. Decliners outnumbered gainers 349 to 304. Volume was 268.8 million shares valued at 625 million Australian dollars. Analysts said the market followed the lead of U.S. financial markets from Friday. A weak domestic debt market and profit-taking contributed to push domestic shares lower. Most industry groups lost ground Monday, led by the media shares subindex, which fell 1.2%. Among media stocks, News Corp. fell 9 cents to A$6.61 and John Fairfax Holdings lost 4 cents to A$2.66. Among the day's more notable moves, Comalco slid 38 Australian cents to A$7.10. The aluminum company reported that its after-tax profit fell 46% in the year ended March 12, 2011 performance didn't hurt Capral Aluminum, which rose 6 cents to A$3.92 on heavy volume of nine million shares. Among interest rate-sensitive sectors, the banking and finance subindex fell 0.9% and the insurance subindex fell 0.8%. Among bank stocks, Australia & New Zealand Banking Group shed 5 cents to A$6.70, and National Australia Bank fell 17 cents to A$12.46. Commonwealth Bank of Australia closed 4 cents lower at A$11.44. The stock goes ex-dividend 52 cents Tuesday. While most blue chips lost ground, Martine Brownfield broke ranks by climbing 19 cents to A$8.24. Shares in Caltex Australia slipped 1 cent to A$5.19. The stock shed 10 cents Friday on news its U.S. parent was looking to divest 43 million shares at an estimated $5.04 apiece. A broker close to the transaction said late Monday the sale was likely to be called off because of weak demand. Qantas Airways was one of the most actively traded stocks, falling 2 cents to A$2.06 on volume of nearly 8.6 million shares.
