Australian stocks: Market shrugs off terrorist attacks

The Australian stockmarket finished slightly weaker yesterday, showing little sustained reaction to the London bombings after early selling dissipated.

Intersuisse equities manager Andrew Sekely said the blasts had immediately affected the market but it regained most of the lost ground.

"I'm not convinced that there is that much of a reaction in the market to the UK bombings," said Mr Sekely.

"Even in the UK after an initial sell off the market responded back again quite quickly and the Dow finished in pluses.

"The [Australian] market started lower this morning then it rallied ... and then as the afternoon has worn on it has eased down with people cleaning things up, selling a few positions ahead of the weekend."

Shortly before the close the S&P/ASX200 was down 4.8 points to 4229.2 and the all ordinaries slid 3.8 points to 4193.8.

The oil price weakened overnight which affected stocks.

Woodside Petroleum and Santos finished the day down A20c apiece to A$29.35

Allied Brands shares tumbled A6c or 20 per cent to A24c after it cut its 2004-05 profit forecast because of costs associated with the acquisition of the Wendy's Ice Cream chain and a continued slippage in the timing of new Baskins-Robbins store openings.

Among the property stocks Westfield deteriorated A9c to A$17.71 and Lend Lease also sank, ending down A5c at A$13.10. GPT Group fared marginally better, gathering one cent to A$3.81.

In the financials AXA climbed 5c to A$4.42, Suncorp-Metway marched forward A10c to A$19.59 and Macquarie Bank was unmoved at A$59.80.

Gold stocks were down, led by Newcrest Mining, which slid A36c to A$17.01. Newmont Mining offloaded 5c to A$5.08 with small gold miner Lihir Gold waning three cents to A$1.205.

The price of gold in Sydney was US$423.50 an ounce, down US$1.85 from Thursday's close.

Preliminary national turnover was 820.63 million shares valued at A$2.49 billion with 398 stocks up, 487 down and 325 unchanged.

Mining company Redport topped turnover, with 48.1 million shares worth A$3.29 million traded. Its shares eased A0.1c to A6.5c.

Oil Search softened 9c to A$3.28 with Tap Oil also falling 9c to $2.51.

The big miners Rio Tinto and BHP Billiton also saw the week out in the red, with Rio casting off A59c to A$45.76 and BHP dipping A22c to A$18.38.

Travel-related stocks fell in early trade amid initial concerns that the attacks in London could dampen demand.

But overall the travel and leisure sector held up well, with Flight Centre recovering from its early decline to close A11c stronger at A$14.12.

Qantas dipped 2c to A$3.20 and Air New Zealand lost A4.5c to A$1.165.

- AAP