Stocks fall as rates stay

THE Australian sharemarket drifted lower yesterday as the Reserve Bank of Australia left rates on hold.

The S&P/ASX 200 fell 26.2 points (0.61%) to 4303.5, while the broader All Ordinaries Index lost 0.60% to 4325.6.

US markets were closed for the Labour Day holiday, while in Europe, stock markets rose amid growing hopes the European Central Bank would unveil a bondbuying program tomorrow.

Despite the positive lead from Europe, local stocks were soft as investors awaited the RBA’s interest rate decision.

Financial and industrial stocks led the falls, with banks among the worst performers. The big four all finished lower.

Mining services company Boart Longyear suffered the ASX 100’s steepest fall, closing 10.9% lower at $1.27, as mining confidence continues to waver in the face of lower iron ore prices.

Fortescue stocks rose on news of cuts in spending and staff, before reversing the gains to close 4.2% down at $3.41. Meanwhile Rio Tinto gained 1.0% to $50.37 as it announced jobs would go. BHP closed up 0.5% at $31.56.

Gold miners Regis Resources and OZ Minerals were the ASX 100’s top performers, with increases of 2.29% and 1.92% respectively.

In the Consumer Discretionary sector, retail stocks continued to slide.

Seven West Media lost 5.7% to close the day at $1.32.

Insurance and superannuation giant AMP enjoyed one of the day’s stronger gains, up 1.4% to $4.36 on news of a mortgage funding deal with one of Japan’s biggest banks.

Information: For the latest share prices visit www.asx.com.au. To speak to a wealth adviser phone 1800 789 789. MOVING AND SHAKING: S&P ASX 200 biggest share price moves UP: RRL Regis Resources ................................................ $4.91 + 2.29% OZL OZ Minerals ........................................................ $6.36 + 1.92% STO Santos Ltd ......................................................... $11.44 + 1.69% BSL BlueScope Steel Ltd ....................................... $00.35 + 1.45% MND Monadelphous Group ..................................... $20.12 + 1.41%

DOWN: AGO Atlas Iron Limited ............................................. $1.26 – 4.55% ILU Iluka Resources ................................................. $8.98 – 4.87% WHC Whitehaven Coal ............................................. $3.05 – 5.28% SWM Seven West Media Ltd .................................... $1.32 – 5.71% BLY Boart Longyear ................................................. $1.27 – 10.88%