Aust stocks fall sharply at open after Wall Street =3 Melbourne

AAP General News (Australia)
08-31-2001
Aust stocks fall sharply at open after Wall Street =3 Melbourne

Telstra Corp continues to lose ground amid investor concern over the telecommunications
giant's future earnings growth.

After falling eight cents, Telstra is trading near two and a half year lows at $4.80.

Other telecommunications stocks are mixed with Cable and Wireless Optus gaining three
cents to be trading at $3.77. Emerging carrier Hutchison Telecommunications is up one
cent at 23.5 cents.

Major banks are weaker across the board. The National Australia Bank leading falls
to be down 68 cents at 33.30.

The Commonwealth Bank of Australia is 47 cents weaker at $29.57.

But bucking the trend is St George Bank, Australia's fifth largest bank, which has
rallied 78 cents at $14.86.

In corporate news, NRMA Insurance Group posted a net profit of $123 million for the
year ending June 30, 2001 - its first annual result since listing on the ASX last year.

NRMA is trading two cents weaker at $3.27.

Dairy group National Foods released its results for the year ended June 30, 2001, with
net profit down 6.5 per cent to $45.1 million.

But with the company flagging its net profit to increase by $10 million over the next
year, the processor's shares are eight cents higher at $2.28.

Elsewhere, oil refiner Caltex has lost three cents at $1.43 after earlier reporting
a 97 per cent slide in first half net profit to $1.24 million.

At 1105 AEST, the gold index had slipped 2.4 points to 766.9, while the spot price
of gold in Sydney was steady at at $US275.00.

The top traded stock based on volume was speculative telco Davnet with 33.86 million
shares traded worth $2.86 million. Davnet was trading up 1.9 cents lower at 7.5 cents.

Elsewhere, BHP was ten cents weaker at $9.49 while Rio Tinto was 38 cents down at $33.82.

At 1105 AEST national turnover had reached 332.02 million shares worth $1.68 billion
with 375 rises, 583 falls and 316 steady.

In Wellington, the NZSE40 was 17.8 points weaker at 2060.8.

While in Tokyo, The Nikkei 225 continues to sink lower, shedding 139 points to 10,799.0,
after Thursday finishing at its lowest close since October 1984.

AAP ej/sh

KEYWORD: STOCKS 3 MELBOURNE

2001 AAP Information Services Pty Limited (AAP) or its Licensors.