THE sharemarket finished modestly higher, well off the day's peak, after weaker than expected Chinese trade figures raised fresh concerns over the slowing of the world's second-largest economy.
The benchmark S&P/ASX 200 Index rose 6.1 points, or 0.1 per cent, to 4557.9, while the broader All Ordinaries gained 6.5 points, or 0.1 per cent, to 4562.4.
Among the sectors, materials did most of the heavy lifting, up 0.9 per cent. Goldminers added 0.6 per cent and financials inched up 0.2 per cent.
Health stocks struggled, dropping 1.5 per cent, energy slipped 0.3 per cent and consumer staples lost 0.4 per cent.
Patersons Securities strategist Tony Farnham said good performances from base materials in the United States and Britain, as well as China's factory output rising to an eight-month high, helped lift mining heavyweights BHP and Rio Tinto.
Rio Tinto added 1.9 per cent to $61.30, while BHP edged up 0.6 per cent to $34.95.
"Any of these partial indicators that indicate the Chinese economy has found a floor in terms of the growth slowdown we've seen of late is well received by the market," Mr Farnham said.
But a later release of data from China showed that exports rose in November at a much weaker rate and imports were flat compared with the previous year. Chinese exports rose just 2.9 per cent from a year earlier, well below expectations of 9 per cent.
As a result, the local market shed much of its gains after the announcement.
Ten Network shares were the biggest loser for the day, down 9.1 per cent to 24.5?, after the broadcaster resumed trading following its deeply discounted $230 million capital raising. The drop was expected after it sold shares to institutions at 20? each.
Southern Cross Austereo also struggled, falling 5.9 per cent to $1.04, after it pulled all advertising from its 2Day FM unit due to the growing controversy surrounding two of its hosts and their prank call to a London hospital.
Elsewhere in the media, Fairfax Media dropped 1.1 per cent to 45.5?, Seven West Media lost 0.3 per cent to $1.58, while News Corp bucked the trend, adding 0.7 per cent to $24.42.
Fortescue Metals jumped 6.9 per cent to $4.05 as the miner continued its efforts to reduce debt by preparing to sell down its stake in a joint venture with BC Iron.
The Pilbara junior will pay Fortescue $190 million for an extra 25 per cent of the project.
Among the banks, Westpac rose 0.6 per cent to $25.90 and NAB added 0.3 per cent to $24.58. CBA was relatively flat at $60.90 and ANZ slipped 0.2 per cent to $24.84.
Frequently Asked Questions about this Article…
How did the ASX close after weaker-than-expected Chinese trade figures?
The sharemarket finished modestly higher but well off the day's peak after the weaker Chinese trade figures. The S&P/ASX 200 rose 6.1 points (0.1%) to 4557.9, and the All Ordinaries gained 6.5 points (0.1%) to 4562.4, though much of the earlier strength was erased when the China data was released.
What did China’s latest trade data show and how did it affect investor sentiment?
China's November exports rose just 2.9% year‑on‑year (well below the expected 9%) and imports were essentially flat. That weaker‑than‑expected reading raised fresh concerns about a slowing Chinese economy and led the local market to shed much of its earlier gains after the announcement.
Which sectors led the gains and which sectors lagged on the day?
Materials led the gains, up 0.9%, with goldminers adding 0.6% and financials inching up 0.2%. On the downside, health stocks fell 1.5%, energy slipped 0.3% and consumer staples lost 0.4%.
Why did BHP and Rio Tinto perform well and by how much did they move?
Patersons strategist Tony Farnham said good performances from base materials in the US and UK, plus China's factory output rising to an eight‑month high, helped lift mining heavyweights. Rio Tinto added 1.9% to $61.30 and BHP edged up 0.6% to $34.95.
What happened to Ten Network shares after its capital raising?
Ten Network was the biggest loser for the day, falling 9.1% to 24.5 after resuming trading following a deeply discounted $230 million capital raising. The drop was expected after it sold shares to institutions at 20 each (as reported).
Why did Fortescue Metals jump and what’s the BC Iron deal?
Fortescue Metals jumped 6.9% to $4.05 as the miner continued efforts to reduce debt by preparing to sell down its stake in a joint venture with BC Iron. The Pilbara junior will pay Fortescue $190 million for an additional 25% of the project.
How did media stocks trade and what caused Southern Cross Austereo to fall?
Media stocks were mixed: Fairfax Media dropped 1.1% to 45.5, Seven West Media lost 0.3% to $1.58, and News Corp bucked the trend, adding 0.7% to $24.42. Southern Cross Austereo struggled, falling 5.9% to $1.04 after it pulled all advertising from its 2Day FM unit amid growing controversy over two hosts and a prank call to a London hospital.
How did the major Australian banks trade during the session?
Bank shares were modestly positive overall: Westpac rose 0.6% to $25.90, NAB added 0.3% to $24.58, CBA was relatively flat at $60.90, and ANZ slipped 0.2% to $24.84.
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