Author:
November 24, 2010 00:58 ET (05:58 GMT)Wednesday
|
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 24/11/10 7:39:23
Australia Shares End Flat After Hitting 3-Month Low
24/11/2010 4:58PM
SYDNEY (Dow Jones)--The Australian share market recovered after hitting a fresh three-month low Wednesday as offshore markets stabilized after reacting to the Korean skirmish yesterday.
Traders said global equity markets could recover further over the U.S. Thanksgiving holiday period, although thin trading conditions could exaggerate volatility before the weekend.
The benchmark S&P/ASX 200 index closed down 4.4 points, or 0.1%, at 4584.7 after hitting 4551.2. Share trading volume was heavier than average at A$6.3 billion.
Overnight, the S&P 500 fell 1.4% and London Metal Exchange copper fell 1.8% amid concern about China's monetary policy outlook, Korean military tensions, European sovereign debt and a U.S. insider trading probe into hedge funds.
But U.S. stock index futures were up 0.4% on Wednesday and the Australian dollar was up 0.6%, as South Korea's stock market recovered to be down 0.2% after falling as much as 2.4%.
"Equity markets have been punched from all angles, but Australia is holding up quite well considering the barrage from China acting against inflation, the Korean skirmish, the European sovereign debt crisis, weak U.S. housing data and the FBI investigation of hedge funds," said RBS Morgans investment adviser Chris Macdonald. "It sets us up for a post-Thanksgiving buying rally in global equities. There's still a lot of cash on the sidelines."
Consumer discretionary stocks were among the weakest in the market, while the heavyweight mining, finance and energy sectors clawed back some of their intraday falls.
Ten Network fell 4.7% to A$1.52 as takeover hopes continued to fade after Gina Rinehart's Hancock Prospecting recently took a 10% stake, potentially blocking any takeover attempt by James Packer's Consolidated Press.
APN News & Media fell 3.9% to A$1.84 as its investor briefing failed to inspire the market.
Crown was another drag on the market, falling 2.2% to A$8.21.
Among the miners, BHP Billiton fell 0.4% to A$42.95 and Rio Tinto fell 1.3% to A$82.49 but Newcrest rose 0.7% to A$39.67 after spot gold hit a seven-day high of US$1,382.18 overnight.
Lynas Corp. was the strongest in the top 200, rising 11% to A$1.53. After the close of trading, Lynas announced a deal to sell 8,000-9,000 tons a year of rare earths to Japan.
Telstra rose 1.5% to A$2.78, extending recent gains, after JPMorgan upgraded the stock Tuesday.
RBS Morgans' Macdonald said the S&P/ASX 200 has seen a healthy pullback from its Nov. 5 peak at 4815.0, leaving it down about 10% versus the S&P 500 this year. Macdonald noted the S&P/ASX 200 was trading on a forward price earnings ratio of about 13 times, well below the long-term average of 14.5 to 15.0 times.
However, some traders felt the market hadn't fallen far enough to shed weak long positions.
"I don't think that you can be too confident saying 'that's it for now', not with so much doubt internationally," said a senior institutional trader who declined to be named.
-By David Rogers, Dow Jones Newswires: 61-2-8272-4693: david.rogers1@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=mVKII5ha6f8pwiN47B43tw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 24, 2010 00:58 ET (05:58 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
|
Feedback: 