Bourse gives up gains as investors take cautious view

The market edged higher: the S&P/ASX200 was up 8.1 points at 4304.6 and the All Ordinaries rose 10.5 points to 4369.1. The December share price futures contract was also higher (17 points at 4326). The market opened strongly—up as much as 1.5%—but momentum faded later in the day.

Investors took a cautious, 'glass half empty' view because of political leadership changes in Italy and Greece and concerns about European Central Bank bond issuances. IG Markets analyst Chris Weston also noted there was ‘no conviction’ in the market and volumes were weak, which contributed to the cautious sentiment.

Resource stocks were mixed: major miners such as BHP Billiton and Rio Tinto slipped while Fortescue Metals and steelmaker BlueScope Steel moved higher. Uranium miner Paladin Energy posted an increased loss for the September quarter after taking an impairment on its Kayelekera mine in Malawi, yet its share price rose (reported up 12% to $1.61).

Bank share moves were mixed: ANZ fell to $20.66, Commonwealth Bank was stronger at $49.86, Westpac rose to $21.05 and National Australia Bank eased to $24.56. Everyday investors should watch bank share price volatility alongside broader market caution and any upcoming economic or regulatory news that could affect lenders.

Qantas shares rose after CEO Alan Joyce said he was hopeful the airline would reach contract agreements with workers by the coming Monday deadline. For investors, labour negotiations can be material to airline costs and operations, so progress on contracts is a near-term catalyst to monitor.

Incitec Pivot fell despite lifting annual profit by 13% and calling 2012 a transitional year for its Asia‑Pacific explosives business. Dulux increased underlying profit by 13% and predicted a more profitable 2012, which lifted its shares. Elders reported a sizable annual loss ($395.4 million) but forecast an improved performance for the current fiscal year, and its shares eased.

Orica's Kooragang Island plant in Newcastle was shut after details emerged of ammonia leaks, prompting political and public concern. The safety and operational news weighed on the stock—Orica shares fell (reported to $24.97)—illustrating how operational incidents can hit share prices quickly.

Turnover was reported at 1.79 billion securities worth $3.87 billion, and commentators described volumes as woeful. Low trading volumes and weak conviction often mean price moves can be less reliable and more volatile; everyday investors should be cautious, avoid overreacting to single-day moves, and focus on fundamentals or clear catalysts before trading.