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Aussie stocks close almost 1% lower on resources sell-off

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The Australian stockmarket finished almost one per cent lower as resources companies suffered steep losses amid weakness on commodities markets.

At the close on Thursday, the benchmark S&P/ASX200 index was down 40.7 points, or 0.93 per cent, at 4,315.7, while the broader All Ordinaries index was down 41.3 points, or 0.94 per cent, at 4,340.2.

On the ASX 24, the September share price index futures contract was 48 points lower at 4,304 with 25,020 contracts traded.

RBS Morgans director of equities Bill Chatterton said resources stocks and mining services companies found it tough on Thursday following a dip in commodities prices, while financial stocks remained unharmed.

“Anything with a resources focus is not having an easy day and the market is really in a defensive mode,” Mr Chatterton said.

“The falls seem to be washing into the support companies.”

In the resource sector, shares in BHP Billiton fell 77 cents, or 2.35 per cent, to $31.99.

Rio Tinto was down $1.91, or 3.78 per cent, at $48.63. Fortescue Metals was also hit, losing six cents or 1.64 per cent, to $3.59.

Major banks were mixed. Commonwealth Bank fell 33 cents, or 0.61 per cent, to $53.98, while Westpac lost 10 cents, or 0.4 per cent, to $24.76. Shares in ANZ fell 12 cents, or 0.48 per cent, to $24.86, and National Australia Bank shares rose 11 cents, or 0.44 per cent, to $25.20.

Miners such as Iluka Resources, Oz Minerals, Lynas and some energy stocks all suffered substantial losses.

In local equities news, fund manager Perpetual reported a 57 per cent slide in net profit, driven largely by a major restructure and weak share market conditions. Shares fell 41 cents or 1.53 per cent to trade at $26.59.

Also on Thursday regional broadcaster Prime Media Group posted a slight rise in its full year net profit of $27.7 million – up 1.9 per cent on the corresponding period.

Shares in the company jumped six cents, or 8.8 per cent, to 74.5 cents.

National turnover was 1.6 billion shares worth $4.1 billion, with 317 shares up, 640 down and 358 unchanged.

The price of gold in Sydney was $US1,657.42, down $US8.56, from Wednesday’s close of $US1,666.10.