THE sharemarket closed weaker for the second day in a row yesterday but performed relatively better than US and European markets, which sold off on renewed sovereign debt concerns.
At the close, the benchmark S&P/ASX 200 Index was down 30 points, or 0.72 per cent.
The local market opened about 1.4 per cent lower but managed to pick up some ground during morning trade.
Sentiment from overseas including 2.5 per cent falls on Wall Street and 3.5 per cent drops in Europe prompted the declines at the open.
Across Asia the news was not as bad, with Shanghai down 1 per cent, the Hang Seng off by 0.6 per cent and the Nikkei flat.
CMC Markets chief market strategist Michael McCarthy said it was good to see Australian investors de-coupling from other markets and thinking for themselves.
"I suspect today that people are recognising we've got a different situation here in Australia than in Europe or the US," he said. "While we are obviously interlinked, our links with Asia and our better internal situation means that we should as a market outperform."
BlueScope Steel said it would conduct a fully underwritten four-for-five accelerated renounceable entitlement offer to raise $600 million to repay debt.
The capital raising would be at 40? a share, a 34 per cent discount on the last trading price of 61? before the steelmaker entered into a trading halt. Fellow steelmaker OneSteel was the worst performer on the ASX 200, down 10?, or 10.8 per cent, at 83?.
Shopping centre operator Centro successfully jumped the first hurdle in its bid for a restructure after retail group security holders voted in favour of the aggregation of Centro Retail Group and Centro Properties Group.
Both entities were in a trading halt, with the retail group last trading at 31? and the properties group having last traded at 4?.
Gold stocks pared back some early losses, finishing down 0.99 per cent, while the metals and minerals sector was 1.1 per cent weaker.
The price of gold in Sydney closed at $US1683.04 an ounce, down $US37.14 from Monday.
Newcrest Mining was down 20? at $35.05, while Kingsgate Consolidated was up 6? at $6.38.
Rio Tinto had a bad day, down $1.40, or 2.1 per cent, at $64.50. BHP Billiton declined 30? to $35.60.
Qantas was down 7? at $1.57.
National turnover was 2.19 billion shares worth $5.14 billion, with about seven shares falling for every three that gained.
Frequently Asked Questions about this Article…
Why did the ASX 200 fall even though Australia looked healthier than US and European markets?
The sharemarket closed weaker for a second day, with the S&P/ASX 200 down 30 points (0.72%). Global sovereign debt concerns sparked heavy selling in the US (around -2.5%) and Europe (about -3.5%), which pressured the open. The local market opened about 1.4% lower but picked up some ground in morning trade and generally performed better than the bigger sell-offs offshore.
How did Asian markets influence the local Australian market that day?
Asia was relatively calm compared with the US and Europe: Shanghai was down ~1%, the Hang Seng off about 0.6% and the Nikkei was flat. That milder performance in Asia helped Australian markets avoid the worst of the global sell-off and contributed to the ASX's comparatively stronger showing.
What did market strategists say about Australian investors 'de‑coupling' from global markets?
CMC Markets chief strategist Michael McCarthy said Australian investors appeared to be thinking for themselves and recognising a different situation domestically. He noted Australia’s stronger links with Asia and a better internal situation as reasons the market should be able to outperform Europe and the US.
What is BlueScope Steel’s capital raising and why is it happening?
BlueScope Steel announced a fully underwritten four‑for‑five accelerated renounceable entitlement offer to raise $600 million to repay debt. The offer price was 40¢ a share, which the company said was a 34% discount to the last trading price of 61¢ before it entered a trading halt.
How did OneSteel perform on the day and what was its share price movement?
OneSteel was the worst performer on the ASX 200 that day, falling about 10.8% to trade at 83¢.
What happened with Centro’s restructure and what were the trading details for Centro shares?
Centro cleared a key step in its restructure after retail security holders voted to approve the aggregation of Centro Retail Group and Centro Properties Group. Both entities were in trading halts; the retail group had last traded at 31¢ and the properties group at 4¢.
How did gold stocks and the metals & minerals sector perform, and what was the gold price in Sydney?
Gold stocks pared some early losses and finished down about 0.99%, while the metals and minerals sector was roughly 1.1% weaker. The price of gold in Sydney closed at US$1,683.04 an ounce, down US$37.14 from Monday.
How did major resources and travel stocks like Newcrest, Kingsgate, Rio Tinto, BHP and Qantas move?
Newcrest Mining fell about 2% to $35.05, Kingsgate Consolidated rose about 6% to $6.38, Rio Tinto dropped $1.40 (around 2.1%) to $64.50, BHP Billiton declined 30¢ to $35.60, and Qantas was down about 7% at $1.57.
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