Aussie stocks lower Incitec Pivot advances

(Adds Incitec Pivot)

SYDNEY, July 10 (Reuters) - Australian shares fell 1.7 percent to a near two-year low on Thursday, led down by financials such as National Australia Bank Ltd (ASX: NAB.ax) on concerns about credit markets and slowing economic growth.

The benchmark S&P/ASX 200 index JO fell 86.7 points to 4,925.2 by 0224 GMT, the lowest level since August 2006.

New Zealand's benchmark NZX-50 index .NZ50 fell 1.7 percent, or 54.41 points, to 3,123.05. The most heavily weighted stock, Telecom Corp of New Zealand (NZX: TEL.nz) , was down 2.9 percent at NZ$3.41.

STOCKS ON THE MOVE

* Incitec Pivot Ltd (ASX: IPL.ax) , Australia's biggest fertiliser maker, gained 5.5 percent to A$173.80.

Credit Suisse said it sees a number of share price catalysts for the firm in the near term, including a production resumption at its Phosphate Hill fertiliser plant in Queensland and a possible share split.

The brokerage kept its outperform rating on Incitec, with a 12-month price target of A$235.

0223 GMT

* Coal miner Macarthur Coal Ltd (ASX: MCC.ax) erased early falls to rise 4.6 percent to A$16.00 after it lifted its fiscal 2008 net profit by as much as 34.3 percent, citing higher coal sales and shipments.

It said it sees net profit in the range of A$80-A$90 million ($76.2-$85.7 million), up from its previous forecast of A$67-A$75 million.

0141 GMT

* Financial firms resumed their falls after a brief respite in the previous session, on persistent concerns about credit losses.

Among the big banks, National Australia Bank Ltd (ASX: NAB.ax) lost 2.9 percent to A$26.80 and Commonwealth Bank of Australia Ltd (ASX: CBA.ax) fell 2.9 percent to A$40.27.

Australia and New Zealand Banking Group Ltd (ASX: ANZ.ax) fell 3 percent to A$18.23 while Westpac Banking Corp (ASX: WBC.ax) was down 3.4 percent at A$19.02.

Macquarie Group MQG, Australia's top investment bank, shed 2 percent to A$47.84.

0059 GMT

* Conglomerate CSR Ltd (ASX: CSR.ax) dropped 13.9 percent to A$1.99 after it said it expected earnings before interest and tax (EBIT) to rise over 5 percent in its current fiscal year, short of analysts' forecasts for 13.8 percent growth.

CSR shares fell as much 15.2 percent in early trade, posting its largest single-day percentage drop since October 1987.

0057 GMT

* Some mining firms advanced after following gains in metals prices such as gold XAU=, zinc and nickel.

Kagara Zinc (ASX: KZL.ax) added 5 percent to A$3.56 and nickel miner Independence Group NL (ASX: IGO.ax) added 3.8 percent to A$4.33.

Among gold miners, Newcrest Mining (ASX: NCM.ax) rose 4.5 percent to A$30.87 and Lihir Gold LGL gained 2.3 percent to A$3.09.

0055 GMT * Shares in New Zealand clothing retailer Hallenstein Glasson (NZX: HLG.nz) fell nearly 6 percent to NZ$2.53, after the company said full-year profit would fall about 30 percent on deteriorating retail markets.

0053 GMT ($1=A$1.05) (Reporting by Geraldine Chua)

More Quotes and Company Information:ANDEAN RESOURCES LIMITED (ASX: AND.ax)AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED(ASX: ANZ.ax)COMMONWEALTH BANK OF AUSTRALIA.(ASX: CBA.ax)CSR LIMITED(ASX: CSR.ax)INCITEC PIVOT LIMITED(ASX: IPL.ax)INDEPENDENCE GROUP NL(ASX: IGO.ax)KAGARA ZINC LIMITED(ASX: KZL.ax)MACARTHUR COAL LIMITED(ASX: MCC.ax)NATIONAL AUSTRALIA BANK LIMITED(ASX: NAB.ax)NEWCREST MINING LIMITED(ASX: NCM.ax)WESTPAC BANKING CORPORATION(ASX: WBC.ax)Hallenstein Glasson Holdings Limited(NZX: HLG.nz)Telecom Corporation of New Zealand Limited(NZX: TEL.nz) ... read full article
Thu 10th July 2008 - 12:28pm