PERTH: The Australian sharemarket was down at noon after revelations of a deadly dam burst at a BHP Billiton joint venture in Brazil weighed heavily on the miner, while ANZ trading ex-dividend also dragged on the bourse.
At 12.05pm (AEDT), the benchmark S & P/ASX200 index was down 10.4 points, or 0.2 per cent, to 5182.6, while the broader All Ordinaries index fell 9.3 points, or 0.18 per cent, to 5238.6.
BHP was down sharply after news that a rural Brazilian community had been devastated following a dam burst at a project owned by the Australian miner and Vale. Another decline in the iron ore price overnight had weighed on the miners more generally, with the resource now at its second-lowest level in 10 years. BHP had sunk more than 3 per cent last night amid the iron ore price falls.
Elsewhere, oil prices fell for a second straight day on abundant supply and as the impact of US interest rate speculation on the dollar weighed over the commodity.
ANZ shares were trading sharply lower as the bank turned ex-dividend today, echoing the performance of peer NAB after it did likewise yesterday. The other two majors, Westpac and Commonwealth Bank, were tracking positively at midday.
The Reserve Bank released its quarterly economic outlook assessment this morning, with lower forecasts for economic growth and inflation buoying investors’ hopes for another interest rate cut. However, the bank dampened that sentiment by noting the overall outlook had improved in recent months — “evident in a range of indicators”.
Elsewhere in economic news, the Australian Industry Group found construction activity expanded for a third straight month, with October’s “broadly unchanged” growth driven by a lift in apartment building.
Energy stocks led the declines, down 2.2 per cent.
Oil Search slipped 1.27 per cent to $7.80, Woodside retreated 2.84 per cent to $29.76 and Santos ticked 1.91 per cent lower to $5.895.
Materials were off 1.34 per cent.
BHP Billiton was down 3.57 per cent to $22.45 while Rio Tinto gave up 0.36 per cent to $49.97. BHP had traded as low as $22.02 during the morning.
Financials were largely flat with the banks mixed. Commonwealth Bank lifted 0.37 per cent to $76.13 while ANZ shares fell 3.04 per cent to $25.84 trading without its dividend.
Westpac shares were up 1.068 per cent to $31.44 while National Australia Bank fell 0.35 per cent to $28.46.
