Aussie shares in broad fall

File photo / Kenny Rodger

The Australian sharemarket closed in negative territory yesterday on broad-based losses as the impact of the strong local currency on forthcoming corporate earnings results weighed on investors.

The benchmark S&P/ASX200 index was down 40.7 points, or 0.84 per cent, at 4784.6 points, while the broader All Ordinaries index shed 41.5 points, or 0.85 per cent, to 4854.7 points.

IG Markets market strategist Ben Potter said the biggest percentage declines were in the heavyweight materials, energy and financial sectors. He said US markets failed to rally on Monday's news of Osama bin Laden's death as it was "a non-issue for markets". The local market was instead focused on the prospect of currency-driven earnings downgrades.

"The market is uncertain as to how big and widespread these downgrades may be."

BHP Billiton was down 65c, or 1.41 per cent, at A$45.50, while fellow mining giant Rio Tinto backtracked 61c, or 0.74 per cent, to A$82.11. Among energy firms, Woodside was down 48c at A$45.85, Santos retreated 23c, or 1.51 per cent, to A$14.96 and Oil Search was off 9c, or 1.27 per cent, at A$6.97.

ANZ Banking Group, the first of three major banks to report this week, increased first-half profit by 38 per cent to a record A$2.664 billion. ANZ finished down 50c at A$23.80, Commonwealth gave up 39c to A$53.36, National Australia Bank was 22c cheaper at A$27.05 and Westpac eased 5c to A$24.73.

Shares in Fairfax Media dropped after it forecast a fall in revenue and earnings, and outsourced sub-editing for its largest mastheads. Fairfax was the worst performing share on the S&P/ASX 100 index, down 10.5c, or 8.02 per cent, at A$1.205. The best performing share on that index was OneSteel, up 7c, or 3.37 per cent, at A$2.15.

Aristocrat shares were steady at $2.73.

Australia's largest gold miner Newcrest was down 62c, or 1.51 per cent, at A$40.54.

Preliminary national turnover was 2.6 billion shares, worth A$5.28 billion, with 360 shares up, 831 down and 333 unchanged.

- AAP