THE sharemarket opened after the Christmas break in a less than jolly mood, closing at its lowest for four days as buyers held back.
The S&P/ASX 200 Index was down 51.6 points, or 1.25 per cent at 4088.8.
"This is a disappointing day but on the other hand it is the hiatus period and turnover is not that great," said Austock Securities senior client adviser Michael Heffernan. "Given what has happened with the reasonable performance of overseas markets I would have thought we were in for a good day."
The market's retreat from its short pre-Christmas rally appeared to be a response to a report yesterday showing a fall of 3.2 per cent in Japanese household spending in November compared with the previous year. As well, industrial output slowed for the first time in two months due to a fall in production, shipments and inventories.
Japan is Australia's second-biggest export destination and trading partner.
The leading retailers had a disappointing day, with Myer, David Jones, Harvey Norman, JB Hi-Fi and Billabong continuing to fall.
"Retailers might have had a bit of a spike on the day before Christmas, but they are in sick conditions, not quite in intensive care," Mr Heffernan said.
He said the market was unlikely to improve until tomorrow or early next week.
"There's a general lack of market-driving announcements or news at the moment," he said. "Investors are wiping the perspiration from their brow and waiting for the 31st of December to roll through."
Shares in Arc Exploration dropped 0.1?, or 10 per cent, to 0.9? after the gold explorer halted operations in Indonesia due to violent and deadly demonstrations. On Christmas Eve, two people were killed and 10 injured while demonstrating against the company's activities in Indonesia.
Rio Tinto fell 2.1 per cent to $60.52 and BHP shed 1.7 per cent to $34.57.
Goldminer Newcrest dropped 69?, or 2.2 per cent, to $30.75 as gold continued to lose ground. At the end of Australian trading, spot gold was at $US1588.31 an ounce, down $US21.63 from Friday.
Financial stocks were also caught in yesterday's down draught, with the sector shedding 1.4 per cent to 3931.1 points.
Atlas Iron shares fell 6?, or 2.12 per cent, to $2.77 after the company sold the Yerecoin magnetite project in Western Australia to
US-based mining company Cliffs Natural Resources for $18 million.
The dollar ended the Australian session at $US1.0150 compared with Friday's $US1.01600.
Frequently Asked Questions about this Article…
Why did the ASX market fall when trading resumed after the Christmas break?
When trading resumed after the Christmas break the S&P/ASX 200 fell 51.6 points (about 1.25%) to 4,088.8, its lowest close in four days. The article cites weaker-than-expected data out of Japan (a 3.2% year‑on‑year fall in household spending in November and a slowdown in industrial output), a lack of market‑moving corporate news during the hiatus, and cautious investor sentiment as reasons for the pullback.
Which ASX retail stocks were hit when the market reopened, and why should everyday investors care?
Leading retailers that continued to fall included Myer, David Jones, Harvey Norman, JB Hi‑Fi and Billabong. The article notes retailers may have seen a pre‑Christmas spike but remain in weak condition, so everyday investors should watch retail earnings and trading updates closely for signs of recovery or ongoing softness.
How did major miners like Rio Tinto and BHP perform on the first trading day after Christmas?
Major miners were down: Rio Tinto fell about 2.1% to $60.52 and BHP slipped about 1.7% to $34.57, reflecting the broader market weakness reported when trading resumed after the holiday break.
What happened to Arc Exploration’s shares and what was the reason reported?
Arc Exploration shares fell about 10% to 0.9 after the gold explorer halted operations in Indonesia following violent demonstrations linked to the company’s activities; the article reports two people were killed and 10 injured in protests on Christmas Eve.
How did gold and gold stocks fare as the market reopened?
Gold and gold miners lost ground: Newcrest fell about 2.2% to $30.75, and spot gold at the end of Australian trading was US$1,588.31 an ounce, down US$21.63 from the previous Friday.
What happened to financial stocks on the first day back from the holidays?
Financial stocks were caught in the downturn, with the sector shedding about 1.4% to 3,931.1 points according to the article.
Did any mining company make a notable sale that affected its share price?
Yes — Atlas Iron’s shares were weaker after the company sold the Yerecoin magnetite project in Western Australia to US‑based Cliffs Natural Resources for US$18 million; Atlas Iron fell to $2.77 (about a 2.12% decline) following the sale.
How did the Australian dollar close relative to the US dollar at the end of the session?
The Australian dollar ended the session at US$1.0150, slightly below Friday's close of US$1.01600, as reported in the article.
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