Big miners a drag on market
At the close on Monday, the benchmark S&P/ASX 200 Index was down 6.5 points, or 0.14 per cent, at 4717.3, while the broader All Ordinaries fell 4.8 points, or 0.1 per cent, at 4738.1.
CommSec analyst Juliette Saly said the local market failed to follow the US as local resources companies struggled following falls on the London Metal Exchange.
"We've again seen very low volumes and not a lot of action on the local market," Ms Saly said. "What has held us back a little is the big miners."
BHP Billiton fell 10¢ to $37.81 and Rio Tinto dived $1.15 to $67.40, but Fortescue gained 3¢ to $4.89.
Ms Saly said overnight the price of copper fell by about 1 per cent on the London Metal Exchange while aluminium was off around 3 per cent. "There's quite a lot of profit taking occurring."
On Friday the Dow Jones Industrial Average was up 43.85 points, or 0.33 per cent, at 13,435.21.
In London, the benchmark FTSE 100 Index added 0.7 per cent to close at 6089.84 points.
In local news, the corporate watchdog will investigate if laws were broken when Whitehaven Coal lost more than $276 million in market value after falling victim to a hoax media release. Whitehaven stopped trading shortly before 1pm for about 10 minutes to confirm the stunt, and its shares recovered most of the losses to close 2¢ down at $3.50.
Shares in rare earths miner Lynas rose 9¢ to 71¢ after it said it expected to be producing finished products from its controversial plant in Malaysia within weeks.
The four major banks were mixed. ANZ added 15¢ to $25.41, National Australia Bank was down 1¢ to $25.30 and Westpac jumped 3¢ to $26.28. However, Commonwealth Bank fell 65¢ to $62.60.
Turnover was subdued at 1.2 billion shares worth $2.9 billion.
Meanwhile, bond futures prices were slightly higher on a quiet day with little economic data to give traders direction. JPMorgan interest rate strategist Sally Auld said bonds had a small rally but there did not seem to be anything driving the price action.
"The only thing is US Treasuries have rallied a little bit in Tokyo so maybe that has added to the bid tone in bond markets - also sharemarkets are lower," she said. "It's just one of those days when I wouldn't be surprised to see the move reversed when London and New York [start trading]."
Frequently Asked Questions about this Article…
The S&P/ASX 200 finished down 6.5 points (‑0.14%) at 4,717.3 and the All Ordinaries fell 4.8 points (‑0.1%) to 4,738.1. Local weakness in large resources companies, after falls on the London Metal Exchange, outweighed positive sentiment from the US, leaving the market slightly lower.
Big miners weighed on the market: BHP Billiton slipped 10¢ to $37.81 and Rio Tinto fell $1.15 to $67.40, which dragged on the index overall. Fortescue was a rare positive among miners, rising 3¢ to $4.89, but it wasn’t enough to offset the larger declines in BHP and Rio.
Profit taking on the London Metal Exchange drove metal weakness: copper fell by about 1% overnight and aluminium dropped around 3%. Those moves contributed to selling in local resources stocks and pressured the ASX.
Whitehaven Coal lost more than $276 million in market value after being targeted by a hoax media release. Trading was halted briefly (about 10 minutes shortly before 1pm) while the company confirmed the stunt; the shares recovered most losses and closed 2¢ down at $3.50. The corporate regulator is investigating whether any laws were broken.
Lynas shares rose 9¢ to 71¢ after the company said it expected to be producing finished products from its controversial Malaysia plant within weeks, signaling progress toward production that investors welcomed.
The big four were mixed: ANZ added 15¢ to $25.41, National Australia Bank slipped 1¢ to $25.30, Westpac jumped 3¢ to $26.28, while Commonwealth Bank fell 65¢ to $62.60.
Turnover was subdued at 1.2 billion shares worth $2.9 billion, indicating relatively low trading volumes and limited market action on the day.
Bond futures were slightly higher on a quiet day with little economic data to move traders. JPMorgan strategist Sally Auld noted a small rally in bonds and that US Treasuries rallied a bit in Tokyo, which may have added to the bid tone. Globally, the Dow Jones was up 43.85 points to 13,435.21 (on Friday) and London’s FTSE 100 rose 0.7% to 6,089.84, but local resources weakness kept the ASX subdued.
Call 1300 880 160
Start a chat
Schedule a call
