THE sharemarket closed lower yesterday, with investor caution about this weekend's Greek elections overriding positive offshore leads.
At the close, the benchmark S&P/ASX 200 Index was down 9.1 points, or 0.2 per cent, at 4063.8.
The market opened higher but quickly took a U-turn and traded lower for the rest of the day.
CMC Markets sales trader Miguel Audencial said that investors closing out long positions in case of a leftist Greek victory were balanced by others with short positions second-guessing that there might be relief for risk assets.
"The reasons for the rally in the US overnight were not based on economic fundamentals, they were based on speculation about further stimulus from the US," Mr Audencial said.
"That's not really a good foundation if you want to start a rally, that's why the selloff was quite quick."
In local economic news, the Westpac-Melbourne Institute Survey of Consumer Sentiment showed a rise for June of 0.3 per cent at 95.6 index points.
Whitehaven Coal shares soared after the miner said billionaire Nathan Tinkler had made a privatisation offer. Whitehaven gained 18?, or 4.5 per cent, to $4.18.
Investment company Macquarie Group announced it had bought a 5 per cent stake in casinos operator Echo Entertainment. Shares in Echo traded at $4.49 before going into a halt. Macquarie was one of the heaviest losers among the top 50 stocks, down 51? to $25.80.
The big miners were mixed. BHP Billiton closed up 20? at $31.92 and Rio Tinto clawed back early losses to finish down only 5? at $54.60.
Fortescue Metals was the stand-out among the top 50, closing 2.9 per cent stronger at $4.68.
Computershare was next best, rising 2.4 per cent to $7.82 after maintaining guidance despite a tough environment in Europe.
The four major banks were all weaker. ANZ was down 20? at $21.57, National Australia Bank was 7? lower at $22.15, Commonwealth Bank was 20? lower at $50.62 and Westpac was 8? worse at $20.49.
At the Sydney close, the spot gold price was up $US19.08 at $US1610.70 an ounce. Goldminer Newcrest dipped 1? to $24.64.
National turnover was 1.5 billion securities, worth $3.5 billion, with 411 stocks up, 564 down and 365 unchanged.
The dollar moved to within half a cent of parity with its US counterpart. At 5pm, it was trading at US99.52?, up from US98.95? on Tuesday.
ForexCT's head of research, Steven Dooley, said that while the market was cautious in the lead-up to the Greek elections on Sunday, the Aussie could move as high as US102? by the end of the week.
"Certainly everything the charts are telling us at the moment, despite all the bad news, is that the Aussie dollar and gold want to go higher," he said. AAP
Frequently Asked Questions about this Article…
Why did the Australian sharemarket close lower today and what role did the Greek election play?
The market closed lower largely because investors grew cautious ahead of the weekend Greek elections. That caution overrode positive offshore leads and led to selling pressure on the S&P/ASX 200, as some investors closed long positions in case of a left‑leaning Greek result, while others with short positions were reassessing whether risk assets might get relief.
How much did the S&P/ASX 200 move and how did the market trade during the day?
The S&P/ASX 200 fell 9.1 points, or about 0.2%, to 4,063.8 at the close. The market opened higher but quickly reversed (a U‑turn) and traded lower for the remainder of the session.
Which individual stocks moved the most and why were they notable?
Whitehaven Coal jumped after billionaire Nathan Tinkler made a privatisation offer, with the stock rising to $4.18. Macquarie Group bought a 5% stake in Echo Entertainment, with Echo trading at $4.49 before being placed in a halt; Macquarie itself was among the bigger fallers in the top 50. Among miners, BHP Billiton closed higher at $31.92, Rio Tinto finished at $54.60, and Fortescue Metals closed stronger at $4.68. Computershare rose to $7.82 after maintaining guidance.
How did the major banks perform on the day?
All four major banks were weaker: ANZ, National Australia Bank, Commonwealth Bank and Westpac all fell during the session, reflecting broad caution in the market.
What happened to gold and gold miners in this trading session?
Spot gold rose by US$19.08 to US$1,610.70 an ounce. The gold miner Newcrest dipped about 1% to $24.64 despite the rise in the spot price.
How did the Australian dollar trade and what did analysts say about its near‑term outlook?
The Australian dollar moved to within half a cent of parity with the US dollar, trading at US99.52c (up from US98.95c). ForexCT's head of research, Steven Dooley, said the Aussie could move as high as US102c by the end of the week and noted that charts were pointing to further gains for the currency and for gold.
What was the market turnover and breadth for the day?
National turnover was 1.5 billion securities worth about $3.5 billion. On the day 411 stocks rose, 564 fell and 365 were unchanged, indicating more decliners than advancers.
Did any domestic economic data influence market sentiment?
Yes. The Westpac‑Melbourne Institute Survey of Consumer Sentiment rose 0.3% in June to 95.6 index points, but investor caution around the Greek elections still dominated market sentiment.
Call 1300 880 160
Start a chat
Schedule a call
