Reuters: Hot Stocks: Australia shares fall to 5-month lows on weaker than expected growth

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Australia shares fall to 5-month lows on weaker than expected growth Jun 5th 2013, 02:20 Tue Jun 4, 2013 10:20pm EDT (Adds details, comments, stocks on the move) SYDNEY, June 5 (Reuters) - Australian shares dropped 1.4 percent on Wednesday to a five-month low as slower-than-expected first quarter growth and weakening demand for metals in China weighed on the market. Banks were weaker, Westpac Banking Corp plumbed 2.3 percent while National Australia Bank lost 1.7 percent. Top lender Commonwealth Bank of Australia tumbled 1.2 percent. Australia's first-quarter gross domestic product showed an increase of 0.6 percent quarter on quarter against a market expectation of 0.7 percent. "The GDP numbers were below expectations, it was a bit of a miss so it's just weighed on the market, particularly the financials and the materials," said Peter Esho, investment adviser at Wilson HTM Investment Group. The S&P/ASX 200 index dived 66.4 points to trade at 4,834.6 by 0153 GMT, its lowest point since January 25. The benchmark rose 0.3 percent on Tuesday. Australian stocks have recently been hit by concerns over slowing growth in China, jitters the Federal Reserve will wind back its stimulus this year and volatility in Japanese equities. Growth in China's steel demand is expected to slow to a near-standstill in 2013, the head of the country's biggest listed steelmaker said on Tuesday, adding to pressure on iron ore prices after a 17 percent fall in May. Miner BHP Billiton Ltd lost 1.5 percent while Rio Tinto Ltd dived 1.7 percent. The Australian index was trading lower compared to the rest of the region with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.8 percent. "Even though the number increases another chance of a rate cut the Australian economic data hasn't been the best lately," Esho said, referring to the gross domestic growth data. "I think there's juts investors taking a bit of money off the table and waiting to see how the Australian picture and the Australian economy emerges." Elsewhere, defensives were weaker. Consumer staples Woolworths Ltd and Wesfarmers Ltd fell 0.3 percent and 1.6 percent respectively. Blood products maker CSL Ltd slipped 0.6 percent while flagship telecommunications provider Telstra Ltd lost 1 percent. U.S. stocks fell on Tuesday as investors sold growth-oriented sectors on speculation the Federal Reserve may slow the pace of its economic stimulus. New Zealand's benchmark NZX 50 index fell 0.4 percent or 19.4 points to 4,454.4. STOCKS ON THE MOVE * ASG Group surged 19.6 percent to A$0.335, a two week high, after announcing it has signed contracts totalling $25 million and is in the process of finalising a further $60 million worth of agreements as the preferred tenderer in exclusive negotiations. (0151 GMT) * Treasury Wine Estates Ltd dropped 1.4 percent after to A$5.82 appointing Tony Reeves as the company's new chief financial officer. (0152 GMT) * Macmahon Holdings Ltd dived 11.1 percent to A$0.16, its lowest point in a month, after advising that its shaft sinking project in New South Wales was terminated. (0153 GMT) (Reporting by Thuy Ong; Editing by Sanjeev Miglani) Link this Share this Digg this Email Reprints

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