Australian exchanges

SYDNEY: Australian shares retreated yesterday as falling metals prices and a slump in Amcor, after its giant US acquisition, put pressure on the materials sector.

The benchmark S&P/ASX200 index closed down 19.1 points, or 0.3%, at 6253.9 points, while the All Ordinaries was down 18.2 points, or 0.29%, at 6340.8 points.

Mining stocks slipped despite a gain in iron ore futures, with worries about continuing trade tensions between the US and China hitting copper prices for a second session.

BHP shed 48 cents, or 1.4%, to $33.62, while Rio Tinto dropped 62 cents, or 0.8%, to $76.40.

Energy stocks fared better after a rise in oil prices on reports Saudi Arabia’s crude oil production suffered an unexpected fall in July, with gains for Woodside, Santos and Oil Search.

Locally, packaging giant Amcor weighed on the Australian materials index after announcing a $US6.8 billion acquisition of US rival Bemis.

The deal expands Amcor’s global footprint, particularly in the US flexible packaging market, but investors sold the stock down 89 cents, or 5.8%, to $14.39 on worries the return on investment would not be equal to previous Amcor boltons.

Roads giant Transurban lifted 12 cents, or 1%, to $12.02 after announcing it had doubled fullyear net profit to $485 million, helped by healthy growth in revenue as more trucks took to its toll roads. — AAP