Global worry keeps investors on sidelines
The S&P/ASX 200 Index edged 5.8 points higher to 5141.2, while the broader All Ordinaries finished up 3.73 points at 5130.8.
Investors kept their hands in their pockets as they awaited the next chapter in the Syrian conflict after US Secretary of State John Kerry called the Middle Eastern nation's use of chemical weapons "undeniable".
Arab Bank Australia treasury dealer David Scutt noted that emerging-market stocks were being hit by the double whammy of uncertainty around the removal of Fed stimulus and Syrian worries. That sell-off was weighing on the local mood.
The intensifying Syrian conflict also weighed on the dollar, which skidded against its main counterparts. The Aussie fell as low as US89.56¢ after opening at US90.29¢ in local trade. The drop was sparked after Asian currencies, particularly the Indonesian rupiah and the Malaysian ringgit, came under pressure, and there were steep falls in Turkey, Brazil and Mexico's currencies.
Rivkin analyst Tim Radford said he thought the market volatility would be short-lived, saying it was unlikely that the US would launch a military assault on Syria given the sensitive political environment in the Middle East.
"At this stage, while governments continue to gather information on the matter, comments from politicians on the attacks should be taken with a grain of salt," he said.
Goldminers had a good day, as bullion prices hit an 11-month high.
Australia's biggest listed gold producer, Newcrest Mining, strengthened 0.3 per cent to $13.74.
BHP and Rio were mostly flat.
Troubled surfwear company Billabong was one of the ASX's worst performers, plummeting 5.3 per cent to 53.5¢ after its annual net loss more than tripled.
Flight Centre was the best performer among the top 200 stocks, soaring 8.5 per cent to a record high of $48.41, after posting another record earnings report.
Among the big banks, Commonwealth advanced 1.2 per cent to $73.47, while NAB and ANZ rose 0.4 per cent to $32.66 and 0.2 per cent to $29.88 respectively. Westpac finished down 0.2 per cent at $31.61. With agencies
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Australian shares were relatively flat as investors stayed cautious. The S&P/ASX 200 edged up 5.8 points to 5,141.2, while the broader All Ordinaries finished up 3.73 points at 5,130.8.
Investors held back because of global worries about a possible escalation of the Syrian conflict and expectations that the US Federal Reserve may soon remove its massive stimulus. Comments from US Secretary of State John Kerry and uncertainty around Fed stimulus created a 'double whammy' that weighed on market sentiment.
The intensifying Syrian conflict and emerging-market currency pressure pushed the US dollar down against major peers and helped trigger AUD weakness. The Australian dollar fell to as low as US89.56¢ after opening at US90.29¢, influenced by falls in Asian currencies such as the Indonesian rupiah and Malaysian ringgit, and steep drops in currencies from Turkey, Brazil and Mexico.
Rivkin analyst Tim Radford suggested the market volatility is likely to be short‑lived. He said a US military assault on Syria looked unlikely given the sensitive political environment, and that political comments on the situation should be taken with a grain of salt.
Goldminers had a strong day as bullion hit an 11‑month high. Australia’s largest listed gold producer, Newcrest Mining, strengthened 0.3% to $13.74.
Major resources names were largely unchanged for the session — BHP and Rio (Rio Tinto) were reported as mostly flat.
Billabong was one of the worst performers on the ASX after reporting an annual net loss that more than tripled. Its shares plunged 5.3% to 53.5¢ following the results.
Flight Centre was the standout, soaring 8.5% to a record high of $48.41 after posting another record earnings report. Among the big banks, Commonwealth Bank rose 1.2% to $73.47, NAB gained 0.4% to $32.66, ANZ climbed 0.2% to $29.88, while Westpac finished down 0.2% at $31.61.
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