Stocks finish the quarter on a flat note

THE sharemarket closed flat after a day of trading within a narrow range before long weekends in New South Wales and parts of Asia.

By InvestSMART · 1 Oct 2011

By InvestSMART ·
1 Oct 2011

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THE sharemarket closed flat after a day of trading within a narrow range before long weekends in New South Wales and parts of 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.

Shares drifted in afternoon trade and by the close the benchmark S&P/ASX 200 Index was up 0.3 points, or 0.01 per cent, at 4008.6.

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.

She said trading volumes were extremely weak after the expiration of single-stock derivatives on Thursday.

Turnover was 2.08 billion shares valued at $7.83 billion. The number of stocks that gained was about the same as those that fell.

"And that's surprising because it's not only the end of the week, it's also the end of the month and the quarter," she said.

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, the worst performers in the same period, ended 0.04 per cent down, with mining giant Rio Tinto falling 1.04 per cent, or 65?, to $61.80. Fellow miner BHP Billiton fell 2? to $35.02.

Energy stocks led the market, rising 1.2 per cent after world oil prices picked up on Thursday on the back of renewed sentiment after the German vote.

Woodside Petroleum rose 34?, or 1.1 per cent, to $32.48 and Santos added 10? to $11.37.

Building materials company Boral gained most among the top 100 companies on the ASX, up 4.8 per cent, or 16?, at $3.50.

Qantas lost 1? to $1.41 after baggage handlers and ground staff voted to keep fighting for better pay, with a one-hour strike possibly being increased to 24 hours.

Fortescue Metals shares shed 3? to $4.42 despite having its highest level of quarterly shipments in the three months since June.

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Frequently Asked Questions about this Article…

How did the ASX finish the day and the quarter?

The market finished essentially flat after trading in a narrow range. The S&P/ASX 200 Index closed up 0.3 points (about 0.01%) at 4008.6, with roughly as many stocks rising as falling.

Why was trading described as lacklustre and volumes weak?

Analysts pointed to a lack of new economic or company data ahead of public holidays in New South Wales, China and South Korea, and very weak trading volumes following the recent expiration of single-stock derivatives — factors that left investors treading water.

What were the market turnover and volume figures investors should note?

Turnover for the session was 2.08 billion shares valued at about $7.83 billion, indicating relatively light activity given it was the end of the week, month and quarter.

Which sectors led and lagged the market on the day?

Energy stocks led the market, rising about 1.2% after world oil prices picked up following a positive vote in Germany. Telecoms were stronger over the quarter and closed 0.39% higher on the day, while materials were the weakest sector, ending around 0.04% lower.

How did major mining stocks perform, including Rio Tinto, BHP and Fortescue?

Rio Tinto fell about 1.04% to $61.80. BHP Billiton also eased to $35.02. Fortescue Metals’ shares were down to $4.42 despite reporting its highest quarterly shipments since June.

What happened with Telstra and the telecom sector?

The telecom sector closed up 0.39% and Telstra was trading at about $3.10 during the session, reflecting the sector’s relative strength over the last quarter.

Which individual ASX top-100 stock gained the most that day?

Building materials group Boral was the top gainer among the ASX top 100, rising 4.8% to $3.50 during the session.

Did any industrial action affect travel stocks like Qantas?

Yes. Qantas shares fell to $1.41 after baggage handlers and ground staff voted to keep fighting for better pay, with a one-hour strike possibly being increased to 24 hours — a development that weighed on the airline’s stock.