Market closes flat as caution reigns

THE share market closed flat on Friday after a day of trading within a narrow range ahead of long weekends locally and in Asia.

By InvestSMART · 1 Oct 2011

By InvestSMART ·
1 Oct 2011

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THE share market closed flat on Friday after a day of trading within a narrow range ahead of long weekends locally and in Asia.

The market opened up 0.1 per cent after the US market's less-than-expected response to Germany's approval to beef up Europe's rescue fund to stave off a second global recession.

RBS Morgans Reynolds Equities director Markus Mueller said the news had not done enough to boost battered investor confidence.

Shares drifted in afternoon trade and by the close, the S&P/ASX200 index was up 0.3 points, or 0.01 per cent, at 4008.6, while the All Ordinaries index gained 2.2 points to 4070.1.

Bell Direct equities analyst Julia Lee called it a "lacklustre session", with investors treading water in the absence of any new data ahead of a public holiday in NSW, China and South Korea on Monday.

Telecom stocks, which Ms Lee said were the strongest of the last quarter, closed 0.39 per cent higher, with Telstra up 1? at $3.10.

Materials, which were the worst performers in the same period, ended 0.04 per cent down, with mining giant Rio Tinto 65? to $61.80. Fellow miner BHP Billiton also fell 2? to $35.02.

Energy stocks rose 1.2 per cent after world oil prices picked up on the back of renewed sentiment after the German vote. Woodside Petroleum rose 34? to $32.48 and Santos added 10? to $11.37.

Building materials firm Boral gained the most ground of the top 100 companies on the ASX, closing 4.8 per cent, or 16?, higher at $3.50.

Qantas lost 1? to $1.41 after ground staff voted to continue fighting for better pay, with one-hour strikes possibly being increased to 24 hours.

The spot price of gold in Sydney was $US1625.4 per fine ounce, up $US0.41 from Thursday's close of $US1624.99.

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Frequently Asked Questions about this Article…

Why did the ASX market close flat today?

The ASX closed essentially flat after a day of narrow-range trading. Investors were cautious ahead of long weekends locally and in Asia and there was a lack of fresh economic data. Although Germany approved beefing up Europe’s rescue fund, the US market’s muted response and cautious investor sentiment kept the S&P/ASX200 largely unchanged.

What were the final ASX index levels today (ASX200 and All Ordinaries)?

The S&P/ASX200 finished at 4008.6, up just 0.3 points (about 0.01%), while the All Ordinaries closed at 4070.1, gaining 2.2 points.

How did telecom and materials sectors perform on the day?

Telecom stocks were the strongest sector, closing about 0.39% higher, with Telstra finishing at $3.10. Materials were slightly weaker overall, ending roughly 0.04% down; major miners like Rio Tinto closed at $61.80 and BHP Billiton at $35.02.

Why did energy stocks rise and which energy companies moved noticeably?

Energy stocks rose after world oil prices picked up following the German vote on Europe’s rescue fund, lifting sector sentiment. Energy was up around 1.2% for the day, with Woodside Petroleum closing at $32.48 (a strong rise) and Santos finishing at $11.37.

Which individual ASX shares had notable moves today?

Building materials firm Boral was the top gainer among the ASX top 100, closing at $3.50 and up about 4.8%. On the downside, Qantas fell to $1.41 after ground staff voted to keep pushing for higher pay and signalled possible longer strikes.

How did commodity prices, like gold and oil, influence markets today?

Gold’s Sydney spot price was US$1,625.4 per fine ounce, up about US$0.41 from Thursday’s close, showing stable demand for safe-havens. Oil price improvements after the German vote helped lift energy stocks and overall sentiment in the resource sector.

What role did international news — like Germany’s rescue-fund vote — play in market moves?

Germany’s approval to beef up Europe’s rescue fund provided some positive sentiment, but the US market’s less-than-enthusiastic reaction meant the boost to investor confidence was limited. Analysts noted the news wasn’t enough to spark broad buying, so local markets largely tread water.

What does a “lacklustre session” mean for everyday investors ahead of public holidays?

A ‘lacklustre session’ typically means low trading volume and small price moves as investors wait for clearer signals or return after holidays. For everyday investors, it’s a reminder to expect thinner liquidity and potentially wider intraday swings around long weekends — and to avoid overreacting to modest, short-term moves driven by low volume.