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.
National 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 closed down 6.5 points (0.14%) at 4717.3, with the All Ordinaries down 4.8 points to 4738.1. The article says weakness among the big resources companies and low trading volumes outweighed optimism from the US, holding the local market back.
Big miners were a drag on the market: BHP Billiton fell 10¢ to $37.81 and Rio Tinto dived $1.15 to $67.40, while Fortescue was a rare gainer, rising 3¢ to $4.89. According to CommSec, the big miners weighed on overall market performance.
Yes. Copper fell about 1% and aluminium was down around 3% on the London Metal Exchange, which the article links to profit taking and pressure on local resources companies, contributing to the soft ASX performance.
Whitehaven Coal lost more than $276 million in market value after a hoax media release. The company halted trading briefly (about 10 minutes before 1pm) to confirm the stunt and its shares recovered most losses, closing 2¢ down at $3.50. The corporate watchdog will investigate whether any laws were broken.
Lynas said it expected to be producing finished products from its controversial Malaysian plant within weeks. Shares rose 9¢ to 71¢ on that announcement, according to the article.
The big four banks were mixed: ANZ added 15¢ to $25.41, National Australia Bank was down 1¢ to $25.30, Westpac jumped 3¢ to $26.28, and Commonwealth Bank fell 65¢ to $62.60.
National turnover was subdued at 1.2 billion shares worth $2.9 billion. Low volumes often mean less broad market participation, which can amplify the impact of big stocks and news — like moves in major miners or a hoax release — on index performance.
Bond futures were slightly higher on a quiet day with little economic data to guide traders. JPMorgan interest-rate strategist Sally Auld noted a small rally in US Treasuries might have added bid tone in bond markets, and lower sharemarkets elsewhere could have contributed to the quiet, possibly temporary, moves.
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