SYDNEY: Australian shares slipped 0.3 percent on Tuesday morning on fresh worries that the debt crisis in Europe is far from being resolved, but uranium companies got a boost on hopes that Australia will lift a ban on uranium exports to India.
Volumes were thin across the board, with investors too nervous to get back into the market on the dim outlook for Europe.
"The markets are very gun-shy," said Tony Russell, senior equities adviser at RBS Morgans.
"What's needed is some positive economic data coming out of the US economy and the European economies. I'm not sure when that will happen, but that's what's needed to turn it around."
The benchmark S&P/ASX 200 index was down 13.3 points at 4,291.3.1.
New Zealand's benchmark NZX 50 index was down 0.2 percent at 3,302.7.
The big miners were mixed, with BHP Billiton off 0.4 percent at A$37.35 following a briefing on its US shale gas business, while Rio Tinto was up 0.2 percent at A$68.77.
The big banks gave little direction, too. Top home lender Commonwealth Bank of Australia fell 1.5 percent, while its three main rivals were between 0.3 percent lower and 0.3 percent higher, after CBA reported its net interest margin had narrowed in the first quarter due to a rate war.
STOCKS ON THE MOVE
Origin Energy rose 0.3 percent to A$14.59 after it said it was looking to raise A$500 million ($510 million) to help fund its Australia Pacific LNG project, with an issue of ASX-listed notes paying a yield of about 8.7pc to 9.2pc a year.
RBS Morgans' Russell said the yield was reasonable, given Origin's relatively low risk profile.
Uranium miner Paladin Energy jumped 4.7 percent to A$1.685 and explorer Toro Energy leapt 12 percent to A$0.086 after Australian Prime Minister Julia Gillard called for overturning a ban on sales of uranium to India.
Industrial services firm Spotless Group jumped as much as 4.3 percent and last traded up 2.6 percent at A$2.41 after a newspaper said buyout firm Pacific Equity Partners was lining up a takeover proposal worth as much as A$700 million ($714.6 million). Spotless said it has not received any proposal from the firm.
Tuesday's gain adds to a 17.5 percent jump in Spotless shares over the past five days, against a 0.3 percent gain in the broader market, which have made it the second-best performer in the top 200 in the past week.
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