Trending down ahead ofUS jobs data

THE share market closed lower yesterday as investors expect poor US employment data to push the market further down.

By InvestSMART · 3 Sep 2011

By InvestSMART ·
3 Sep 2011

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THE share market closed lower yesterday as investors expect poor US employment data to push the market further down.

The benchmark S&P/ASX200 index slipped 64.6 points, or 1.5 per cent, at 4242.9 points, while the broader All Ordinaries index fell 61.2 points, or 1.4 per cent, to 4321.5 points.

The market opened weaker, pulled down by losses on the US market.

US stocks dropped more than 1 per cent on Thursday, despite a manufacturing report reflecting expansion in the industry.

An Ord Minnett client adviser Jon Hancock said the majority of stocks followed the market down with the anticipation the US jobs report would make the market fall further.

[There were] very light volumes, very little interest in the retail side of the business, he said. Monday is a Labour Day public holiday in the US.

In local trade yesterday, few stocks bucked the downward trend, with Fairfax Media closing up 1 cent, or 1.2 per cent, at 88?.

Qantas Airways shares were also up 3.5?, or 2.2 per cent, to $1.63 after it reported improving yields, or average fares per passenger, across the airline group for July.

Among the miners, BHP Billiton was 83? lower at $39.04. Fellow miner Rio Tinto was down $1.03 to $72.05.

The major banks also closed down, with ANZ the weakest performer, losing 35?, or 1.7 per cent, to $19.92. Commonwealth Bank fell 56? to $47.52, National Australia Bank lost 34? to $23.51 and Westpac was 21? lower at $20.51.

The worst performing stock at the close was Tabcorp, which fell 13?, to $2.70.

The price of gold in Sydney closed at $US1828.90 per fine ounce, up $12.22 from Thursdays local close of $US1816.68.

National turnover was 1.74 billion shares changing hands for $4.46 billion, with 375 stocks up, 650 down and 366 steady.

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Frequently Asked Questions about this Article…

Why did the ASX share market close lower yesterday?

The ASX fell as investors anticipated weak US employment data that could push markets down further. The local market opened weaker after losses in the US, where stocks dropped more than 1%, and traders cited light volumes and low retail interest ahead of the US jobs report.

How much did the S&P/ASX 200 and All Ordinaries fall?

The benchmark S&P/ASX 200 slipped 64.6 points (about 1.5%) to 4,242.9, while the broader All Ordinaries fell 61.2 points (about 1.4%) to 4,321.5, according to the report.

Which ASX stocks bucked the downward trend and why did Qantas shares rise?

A few stocks rose despite the market slide: Fairfax Media closed up 1 cent (about 1.2%) and Qantas shares were higher (up around 2.2%) to $1.63 after the airline reported improving yields — average fares per passenger — across the group for July.

How did major miners like BHP and Rio Tinto perform on the day?

Miners were weaker: BHP Billiton closed at $39.04 and Rio Tinto was down to $72.05, reflecting the broader market pullback reported that day.

What happened to the major banks on the ASX during the sell-off?

The big four banks all closed lower. ANZ was the weakest, down about 1.7% to $19.92. Commonwealth Bank, National Australia Bank and Westpac also finished the session lower at $47.52, $23.51 and $20.51 respectively.

Which stock was the worst performer and how did Tabcorp finish?

Tabcorp was the worst performing stock at the close, finishing the day at $2.70 after a notable decline during the session.

What happened to the gold price in Sydney and how might that affect investors?

Gold in Sydney closed at US$1,828.90 per fine ounce, up US$12.22 from the prior local close of US$1,816.68. Rising gold prices can indicate increased demand for safe-haven assets when equity markets are volatile, which some everyday investors watch as a risk hedge.

What were trading volumes and market breadth on the day?

National turnover was 1.74 billion shares for A$4.46 billion. Market breadth showed 375 stocks up, 650 down and 366 steady, reflecting broad weakness across the market as traders awaited the US jobs report.