Aussie stocks down on global sell-off; QGC jumps

(Adds Queensland Gas, updates indexes)

Australian shares fell 2.4 percent on Wednesday, mirroring a sell-off in equity markets worldwide after a tumble in China’s main index stoked worries of a global economic slowdown.

The benchmark S&P/ASX 200 index <.AXJO> lost 144.3 points to 5,849.5 by 0230 GMT. It had fallen as much as 3.45 percent earlier in the session, its biggest one-day percentage fall since Sept. 17, 2001 when it slipped 4.7 percent.

Among stocks that bucked the downward trend, Queensland Gas Ltd. jumped after receiving a takeover bid and retailer Woolworths Ltd. gained after giving an upbeat outlook on Tuesday.

New Zealand’s benchmark NZX-50 Index <.NZ50> was also down, falling 78.82 points, or 1.9 percent, to 4,020.60, its biggest one-day percentage fall since May 2, 2003 when it fell 2.2 percent.

The top stock, Telecom Corp. , slipped 1.8 percent to NZ$4.80.

STOCKS ON THE MOVE

* Queensland Gas surged as much as 13.6 percent to A$1.545 after investment fund TCW Group Inc. launched an A$812 million ($644 million) bid for the Australian coal seam gas producer, trumping a rival bid by AGL Energy Ltd [ID:nSYD148444].

It last traded up 12.1 percent at A$1.525, above the A$1.51 per share that TCW is offering.

0229 GMT

* Woolworths Ltd. , Australia’s largest supermarket chain, rose 2.6 percent to a record A$27.44, adding to Tuesday’s 2.1 percent gain. JP Morgan raised its earnings forecasts and stock recommendation on the company following the positive outlook it gave with its profit result [ID:nSYD148525].

0130 GMT

* Tattersall’s Ltd. , Australia’s top lottery operator, rose 0.9 percent to A$4.54, after hitting an all-time high of A$4.56 earlier in the session as investors turned to stocks with limited exposure to China.

“What triggered the sell-off (in global markets) does not have an impact on a number of stocks and that’s why we are not seeing the likes of Woolworths and Tattersall falling,” said Paul Xiradis, chief executive officer at boutique fund Ausbil Dexia.

0130 GMT

* Australian electrical and furniture retailer Harvey Norman Holdings Ltd. fell 4.1 percent to A$4.23 after posting a first-half profit that was slightly below market forecasts [ID:nSYD118873].

0034 GMT

* Australia’s Smorgon Steel Group Ltd. lost 4.3 percent to A$1.905 after its first-half profit rose 6 percent, though below market expectations [ID:nSYD272580].

0033 GMT

* The top four banks fell, sending the financial services index <.AXFJ> down 166.8 points, or 2.4 percent.

National Australia Bank Ltd. was down 1.8 percent at A$39.95, Commonwealth Bank of Australia Ltd. fell 2.0 percent to A$49.66, Australia and New Zealand Banking Group Ltd. lost 1.7 percent to A$29.21 while Westpac Banking Corp. fell 1.9 percent to A$25.51.

0033 GMT

* Resource stocks with exposure to the China market were among the biggest decliners.

BHP Billiton Ltd. , the world’s top miner, slipped 5.6 percent to A$27.25, while rival Rio Tinto Ltd. lost 5.6 percent to A$75.19.

Sino Gold dived 12.31 percent to A$7.05, Newcrest Mining slipped 6.0 percent to A$22.43 while Woodside Petroleum Ltd. was down 2.7 percent at A$37.25.

2335 GMT

* Australian contractor Lend Lease Corp. Ltd. fell 2.5 percent to A$17.95 after it reported a 2 percent fall in first-half operating profit, hit by delays on a UK hospital project, but reaffirmed it expected strong profit growth for the full year [ID:nSYD127144].

2333 GMT

* Australia’s Symbion Health Ltd. was down 3.6 percent to A$3.75 after it posted a slight decline in first-half profit before items due to higher finance charges [ID:nSYD44655].

2331 GMT

* Australian energy infrastructure group Alinta Ltd. , which is facing a management buyout proposal, fell 2.2 percent to A$14.13 after posting an 8.2 percent fall in second-half net profit, largely due to a write-down of its gas pipeline [ID:nSYD144044].

2331 GMT

* QBE Insurance Group Ltd. , Australia’s top insurer by premium income, slipped 6.3 percent to A$31.50 after it said it had raised A$406 million ($320 million) by selling new shares to institutional investors [ID:nSYD148279].

2330 GMT ($1=A$1.27) ($1=NZ$1.43)