Investors look to European summit

THE stockmarket closed marginally lower yesterday, as early gains were erased before tomorrow's European summit.

By InvestSMART · 22 Oct 2011

By InvestSMART ·
22 Oct 2011

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THE stockmarket closed marginally lower yesterday, as early gains were erased before tomorrow's European summit.

The benchmark S&P/ASX200 index slipped 3 points to 4141.9, while the broader All Ordinaries eased 3.4 points to 4203.4.

An IG Markets strategist, Stan Shamu, said hopes of a solution to the European debt crisis dominated trading.

"Despite early gains, we have since seen a reversal as investors position themselves ahead of the European summit," he said in a research note. "The miners have been sold off over the past few sessions, tracking metals prices lower."

Mr Shamu said many investors were taking a "wait and see" approach before a second EU summit on Wednesday, with French and German leaders flagging a global and ambitious answer to the region's debt problems.

Making news yesterday, Woodside Petroleum increased third quarter revenues by 27 per cent as higher commodity prices offset lower production. The stock ended 22? down at $33.38.

Other energy stocks fared better. Oil Search rose 7? to $5.88, while Santos was up 5? at $12.12.

Among the big miners, BHP Billiton rose 22? to $35.70, Rio Tinto fell 28? to $62.57 and Fortescue fell 6? to $4.25.

The big retail banks finished mixed, with ANZ up 9? at $21.21 and NAB rising 4? to $24.32, while Commonwealth Bank fell 17? to $47.55 and Westpac fell 3? to $21.50. Investment bank Macquarie Group fell 47? to $22.53.

Coles owner Wesfarmers fell for a second day, closing down 54?, or 1.7 per cent, at $31.

Supermarket rival Woolworths, which is due to release quarterly sales results next week, fell 53?, or 2.16 per cent, to $24.06.

Turnover was 1.54 billion shares worth $4.13 billion.

ALL ORDS

4203.4

AUSTRALIA

3.4 (-0.1%)

HIGH 4228.3

LOW 4193.5

OCT 21

SOURCE: BLOOMBERG

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Frequently Asked Questions about this Article…

How did the ASX perform yesterday and what were the benchmark index levels?

The Australian market closed marginally lower. The S&P/ASX 200 slipped 3 points to 4,141.9 and the broader All Ordinaries eased 3.4 points to 4,203.4.

Why were investors cautious ahead of the European summit and how did that affect markets?

Investors took a 'wait and see' approach ahead of a second EU summit, according to IG Markets strategist Stan Shamu. Hopes for a solution to the European debt crisis dominated trading, leading to a reversal of early gains as investors positioned themselves before the meeting.

What happened to miners and metals stocks, and why did they fall?

Miners were sold off over recent sessions, tracking lower metals prices. That decline in commodity prices drove weakness in major mining stocks during the trading day.

How did Woodside Petroleum perform and what did the company report?

Woodside Petroleum reported a 27% increase in third-quarter revenues as higher commodity prices offset lower production. Despite the revenue rise, the stock closed lower at about $33.38.

Which energy stocks rose and by how much did they move?

Other energy stocks did better: Oil Search rose to $5.88 and Santos closed up at $12.12, according to the article's session results.

How did the big miners (BHP Billiton, Rio Tinto, Fortescue) trade during the session?

BHP Billiton rose to $35.70, Rio Tinto fell to $62.57, and Fortescue fell to $4.25, reflecting mixed moves across large mining companies.

What was the performance of the major banks and investment bank Macquarie?

The big retail banks finished mixed: ANZ rose to $21.21 and NAB increased to $24.32, while Commonwealth Bank fell to $47.55 and Westpac fell to $21.50. Investment bank Macquarie Group fell to $22.53.

What was market turnover and why does that matter for everyday investors?

Turnover for the session was 1.54 billion shares worth $4.13 billion. Higher turnover signals stronger market liquidity and participation, which can affect how easily investors can buy or sell shares at prevailing prices.