Australia Shares Pulled Lower by Weak Resources Stocks

   By Robb M. Stewart 
 

MELBOURNE, Australia--A slump in oil prices and renewed worries about the prospects for iron-ore producers weighed on Australian resources stocks Thursday, pulling the market lower for the first time in a holiday-shortened trading week.

The S&P/ASX 200 closed down 0.5% at 5932.2, with most key subindexes in the red.

"The materials sector was the worst performer, falling 1.3%," Commonwealth Securities' Elvina Simpson said, pointing to new China plans to prop up its own iron-ore industry by reducing a tax for domestic mining companies.

Shares of BHP Billiton Ltd. (BHP.AU), Rio Tinto Ltd. (RIO.AU) and Fortescue Metals Group Ltd. (FMG.AU) fell 1.8%, 0.7% and 2.6%, respectively. But BC Iron Ltd. (BCI.AU) bucked the trend with a 7.3% gain after it boosted third-quarter shipments by 20% and said it would target further cost reductions to mitigate plunging prices for the steelmaking commodity.

Energy stocks were also weaker after oil futures plunged in overnight trading, in the wake of data that showed U.S. oil inventories posted the largest one-week jump since 2001, reigniting concerns about a supply glut that has helped drive down oil prices by more than 50% from its mid-2014 peak.

Woodside Petroleum Ltd. (WPL.AU) stocks fell 2.7%, while shares of Oil Search Ltd. (OSH.AU) and Santos Ltd. (STO.AU) were down 0.3% and 0.5%, respectively.

The major banks were all lower, with Westpac Banking Corp. (WBC.AU) leading the decline with a 0.6% drop in its shares, followed by Australia & New Zealand Banking Group Ltd. (ANZ.AU), whose shares declined 0.5%.

Retailer Myer Holdings Ltd. (MYR.AU) was again a standout, with its stocks rising 5.3% in a move traders have attributed to recent takeover speculation in local newspapers. Its shares have risen 15% so far this week.

Write to Robb M. Stewart at [e-mail]