QBE bucketing puts a dampener on market
The benchmark S&P/ASX 200 Index edged down 0.8 points to 5143.6 as QBE led the falls for the second day in a row. The broader All Ordinaries Index slipped 2.2 points to 5146.2.
A monthly measure of business conditions produced by National Australia Bank rose a point to minus three, indicating the operating environment remains lacklustre. NAB's measure of business confidence dipped a point to five.
At the local close, the dollar was buying US91.03¢, down from US91.04¢ at the previous close.
Among the big banks, NAB was unchanged at $33.17, while the rest of the big four were all higher after Bureau of Statistics figures showed the number of home loans approved in October rose 1 per cent to the highest monthly level on record.
Commonwealth Bank added 0.5 per cent to $75.26, while Westpac gained 0.3 per cent to $31.19, and ANZ rose 0.1 per cent to $30.78. The Australian Competition and Consumer Commission has appealed a Federal Court decision to dismiss allegations of price fixing against ANZ.
QBE lost another 9.8 per cent to $10.82 after dumping 22.3 per cent the day before, when it emerged from a trading halt to warn it would suffer a $250 million reported net loss for the year.
Embattled Qantas fell 3 per cent to a record closing low of 96.5¢, after hitting an intra-day record low of 95.5¢.
Rio Tinto subsidiary Energy Resources of Australia lost 11.5 per cent to $1.01, as the government put a ban on processing at its Ranger uranium mine. ERA dumped 12.7 per cent on Monday following a containment breach over the weekend.
Australia's biggest oil producer, Woodside Petroleum, added 0.5 per cent to $37.57, as chief executive Peter Coleman said the company had other development options if a planned $US1.25 billion ($1.37 billion) investment in an Israeli gas field, which has been hit by delays, does not go ahead.
Industrials was the best-performing sector, up 0.7 per cent, as Brambles - adjusted for the Recall spin-off - added 4.9 per cent to $8.86. Document management business Recall Holdings rose to $4.50 after debuting at $4.15.
Frequently Asked Questions about this Article…
QBE's share price dropped significantly because the company warned it would suffer a $250 million reported net loss for the year, leading to a 9.8% decline after a previous 22.3% drop.
The S&P/ASX 200 Index edged down 0.8 points to 5143.6, reversing early gains due to a slump in QBE's share price.
Despite record highs on Wall Street, the Australian market finished flat as early gains were erased by a significant drop in QBE's share price.
In the recent market update, NAB remained unchanged, while Commonwealth Bank, Westpac, and ANZ saw slight increases in their share prices.
The Australian dollar was slightly down, buying US91.03¢ compared to US91.04¢ at the previous close.
Energy Resources of Australia's share price dropped 11.5% due to a government ban on processing at its Ranger uranium mine following a containment breach.
Woodside Petroleum's share price increased by 0.5% as the company announced it had other development options if a planned investment in an Israeli gas field does not proceed.
The Industrials sector was the best-performing, rising 0.7%, with Brambles adding 4.9% after adjusting for the Recall spin-off.
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