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 due to the company warning of a $250 million reported net loss for the year, which led to a 9.8% decline after a previous 22.3% drop.
The S&P/ASX 200 Index finished flat, edging down 0.8 points to 5143.6, as early gains were erased by a slump in QBE's share price.
Despite record highs on Wall Street, the Australian market finished flat due to a significant decline in QBE's share price, which offset early gains.
Among the big banks, NAB remained unchanged, while Commonwealth Bank, Westpac, and ANZ saw slight increases in their share prices.
Qantas fell 3% to a record closing low of 96.5 cents, after hitting an intra-day record low of 95.5 cents.
Energy Resources of Australia shares dropped 11.5% to $1.01 after the government banned processing at its Ranger uranium mine following a containment breach.
Woodside Petroleum's stock increased by 0.5% to $37.57, as the company explored other development options amid delays in an Israeli gas field investment.
Industrials was the best-performing sector, rising 0.7%, with Brambles adding 4.9% after adjusting for the Recall spin-off.
Call 1300 880 160
Start a chat
Schedule a call
