Australian Stock Market Report - Closing

The financial sector eased by 0.7pct as all of the majors headed south despite a positive start to the trading day. Shares in Westpac (WBC) fell 1pct to $26.63 while the Commonwealth Bank (CBA) eased by 0.5pct to $55.60 and the ANZ (ANZ) fell 1pct to $24.02. The NAB (NAB) lost 0.3pct to $26.83 and Macquarie Group (MQG) eased by 1.8pct to $48.89. 

Index leader BHP Billiton (BHP) had an encouraging start to the day but was sold off in afternoon trade, shaving 0.8pct off the overall materials sector. BHP fell 0.7pct to $42.57. Rio Tinto (RIO) lost 0.8pct to $75.38 while iron ore miner Fortescue Metals Group (FMG) fell 3pct to $4.79. Gold miner Newcrest Mining (NCM) eased by 1.5pct to $33.69 and Lihir Gold (LGL) was off by 1.3pct to $2.97. 

The energy sector eased by 0.2pct as the Nymex contract fell 0.5pct to US$80.82 a barrel. Shares in Arrow Energy (AOE) rose 1pct to $5.25 on speculation the company would reject a $3.3 billion takeover offer from Royal Dutch Shell and PetroChina as too low. Shares in LNG were placed in a trading halt, last at $0.51 ahead of an announcement on the proposed sale of its Fisherman´s Landing project in Queensland to Arrow Energy. Meanwhile Oilsearch (OSH) indicated that its Papua New Guinea liquefied natural gas project has reached financial close and is proceeding in full. Shares in OSH gained 0.4pct to $5.68 while Santos (STO) was firmer by 0.9pct to $14.18. 

Elsewhere, Transfield Services (TSE) rose 1.7pct to $4.19 after being selected as the preferred provider for a 30-year Canadian road contract.

Telstra (TLS) shares fell 0.7pct to $3.04 as investors booked profits in the telco following its recent rally.

Among other defensive stocks; Woolworths (WOW) fell 1pct to $28.21 and CSL Limited (CSL) was down 1pct to $35.75.

In economic data today, the national average petrol price rose by 2.3 cents in the latest week to 128.3 cents per litre. Petrol prices have lifted by six cents a litre over the past two weeks, marking the biggest increase in prices in over a year. The terminal gate (wholesale) petrol price has hit 16-month highs, as global oil prices track higher. However the recent strength in the Australian dollar is likely to absorb some of the increase in oil prices.

Meanwhile, total new lending commitments (housing, personal, commercial and lease finance) fell by 2.8pct in January. In annual terms lending is down 10.2pct on a year ago: an 11-month low. Housing finance fell by 3.4pct in January, the fourth straight monthly decline. Commercial and personal finance both eased in the month. 

The Australian dollar ended the day's trade weaker against all the major currencies and at 4.30pm AEDT was worth US91.48c, £0.6031 and €66.55c.

On the market overall, a total of 2.41 billion shares were traded, worth $4.18 billion. 441 were up, 627 were down and 354 were unchanged.

At 4.30pm AEDT on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was at 4790, down 29pts.

Ahead in the US tonight; the Empire Manufacturing survey is due before the start of trading, along with the Federal Reserve's February reading on factory output.