Investors spooked by eurozone jitters
Having fallen as much as 1.5 per cent in early trade, the benchmark S&P/ASX 200 Index finished just above 5000, down 52.2 points, or 1 per cent, to 5003.6, while the broader All Ordinaries fell 50.9 points, or 1 per cent, to 5021.8.
After starting the week off on a positive note, investors were spooked by the inconclusive Italian election results. The market might be worried about the implementation of austerity measures, aimed at holding the country's finances together, with a negotiated or minority government.
"We haven't really seen Europe rear its ugly head ... we know it's an issue, we know it's quantifiable, but this just puts it back in investors' faces again," said RBS Morgans trader Luke McElwaine.
He said there had been significant resistance at the 5000 level, but it also proved there was support to continue to consolidate at this level.
The resources sector was hit doubly hard, as cyclone Rusty forced the closure of Port Hedland, a major terminal for iron ore exports out of Western Australia. Despite the closure, which would lower world supplies, iron ore prices slipped 1.1 per cent to $US151.90 a tonne.
BHP dropped 1.5 per cent to $36.35, Fortescue Metals lost 2.9 per cent to $4.61 and Rio Tinto, which had its outlook downgraded to negative by ratings agency Standard & Poor's, fell 0.9 per cent to $65.57.
Atlas Iron slipped 3.4 per cent to $1.545 after the up-and-coming miner reported a $256 million first-half loss caused by a number of write-downs in the value of its assets.
Virgin Australia shares lost 5.8 per cent to 41¢ after the airline failed to commit to a tripling of Tiger's Australia-based fleet, one of the conditions of taking a controlling stake in the budget airline. On top of this, Virgin reported a 56 per cent fall in first-half net profit to $23 million.
Shares in Ramsay Health Care jumped 1 per cent after reporting a 10.1 per cent increase in net profit. The private hospital operator indicated it was keen on expanding to help meet the demands of Australia's ageing population.
QBE, as well as confirming a plan to shed 700 jobs, reported an 8 per cent rise in full-year profit.
However, the result failed to impress investors as the insurance provider's shares fell 2.2 per cent to $12.75.
A $47 million first-half loss caused by weak coal prices, among other issues, weighed on Whitehaven Coal shares, which slumped 3 per cent to $2.91.
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The market was spooked by inconclusive Italian election results and eurozone instability. The benchmark S&P/ASX 200 fell about 1%, down 52.2 points to finish at 5,003.6, while the All Ordinaries slipped about 1%, down 50.9 points to 5,021.8.
Uncertainty from the inconclusive Italian vote raised fears about possible austerity or a fragile government in Europe, which unsettled investors and pushed markets lower. Traders said the news brought European risk back into focus and weighed on sentiment for Australian shares.
Cyclone Rusty forced the temporary closure of Port Hedland, a major iron ore terminal, hitting the resources sector. Despite reduced supply, iron ore prices slipped 1.1% to US$151.90 a tonne, and major miners fell: BHP down 1.5% to $36.35, Fortescue down 2.9% to $4.61, and Rio Tinto down 0.9% to $65.57 (after a negative outlook from Standard & Poor's).
Atlas Iron shares slipped 3.4% to $1.545 after the miner reported a US$256 million first‑half loss, driven by a number of write‑downs in the value of its assets.
Virgin Australia shares lost 5.8% to 41¢ after the airline failed to commit to tripling Tiger's Australia‑based fleet (a condition for taking a controlling stake). Virgin also reported a 56% fall in first‑half net profit, down to $23 million.
Ramsay Health Care shares rose about 1% after reporting a 10.1% increase in net profit and signalling interest in expansion to meet demand from Australia’s ageing population. QBE reported an 8% rise in full‑year profit and confirmed plans to cut 700 jobs, but its shares fell 2.2% to $12.75.
Whitehaven Coal shares slumped 3% to $2.91 after the company posted a $47 million first‑half loss, which the article attributed in part to weak coal prices among other issues.
Traders noted significant resistance around the 5,000 level on the S&P/ASX 200, but also said there was support for the market to consolidate at that mark. For everyday investors, that means 5,000 is a key psychological and technical level being closely watched for market direction.
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