THE sharemarket lost more than 2 per cent this week, thanks to a couple of wild nights on the US market.
Analysts said the market was a little directionless, and with traders unwilling to make a big bet either way, the market drifted lower, closing below 4500 points for the first time in eight days yesterday.
Meanwhile, the US reporting season continued to disappoint.
"We've got the US elections, we've got Chinese leadership change, and we've still got all the issues with Europe swirling around," BBY analyst Henry Jennings said.
"We were all getting excited because we thought the US earnings season was going to be positive, but the majority of companies there have disappointed. Even Apple has been a little bit disappointing, and that says something about the world economy."
For the week, the S&P/ASX 200 Index lost 98.6 points, or 2.1 per cent, to 4472.4 points. The week ended with a disappointing slump yesterday, weighed down by Asian stocks.
Local resource stocks took a hit after new data showed Chinese economic growth slowed for the seventh consecutive quarter in September. But economists said the numbers were better than they first appeared.
"Real GDP growth in China eased to 7.4 per cent, in line with both our own forecasts and market expectations, and was the slowest pace in 3 years," NAB's James Glenn said. "However, quarter-on-quarter growth came in stronger than expected."
For the week, ANZ lost 43? to $25.23 after the bank's chief, Mike Smith, said small and medium businesses could be in for more economic pain if the dollar strengthened again.
Billabong shares rose 8.5? to 93.5? after the outgoing chairman said the company remained open to takeover offers as it tried to revive its fortunes.
Echo Entertainment slipped 40? to $3.57 after chairman John O'Neill said he was relaxed about billionaire James Packer opening a rival casino in a proposed $1 billion six-star resort in Sydney.
Crown slipped 23? to $9.46 despite Mr Packer getting approval to go ahead with the project.
GrainCorp rose $3.35 to $12.20. The company's shares have soared more than 37 per cent since US-based food processing company Archer Daniels Midland Company proposed a $2.68 billion takeover..
Insurance Australian Group fell 10? to $4.51 after it said it was on track to achieve its full-year financial forecasts after its first-quarter performance.
Macquarie Group fell 46? to $30.85 despite increasing its first-half profit, thanks to improved financial market conditions for its investment businesses.
Tatts Group fell 16?, to $2.74, after the Australian Shareholders' Association said it was time for a new chairman.
Whitehaven Coal fell 19?, to $3.05, after the miner said it was set to become a major player. With AAP
Frequently Asked Questions about this Article…
Why did the Australian sharemarket fall more than 2% this week?
The market slid after a couple of wild nights on the US market and a disappointing US reporting season. Traders were cautious and directionless, and the S&P/ASX 200 Index lost 98.6 points (about 2.1%) to close at 4,472.4 points for the week.
How did disappointing US earnings, including Apple, affect Australian investors?
Analysts said the US reporting season was weaker than expected and that even major names such as Apple had been disappointing, which dented investor confidence and contributed to local market weakness.
What impact did China’s economic slowdown have on local resource stocks?
New data showed China’s real GDP growth eased to 7.4%, the slowest pace in three years, which put pressure on Australian resource stocks. Economists noted, however, that quarter-on-quarter growth was stronger than first appeared.
What happened to ANZ shares and why should everyday investors care?
ANZ’s share price fell to $25.23 after the bank’s chief, Mike Smith, warned that small and medium businesses could face more economic pain if the Australian dollar strengthened. That comment highlighted sensitivity of domestic lenders and SMEs to currency movements.
Why did GrainCorp shares jump and what takeover news drove that move?
GrainCorp rose to $12.20 (up $3.35) after US-based Archer Daniels Midland proposed a $2.68 billion takeover. The article also notes GrainCorp shares have climbed more than 37% since that proposal was announced.
How did proposed casino developments and James Packer’s plans influence Echo Entertainment and Crown shares?
Echo Entertainment slipped to $3.57 after chairman John O’Neill said he was relaxed about billionaire James Packer opening a rival casino in a proposed $1 billion six‑star Sydney resort. Crown also fell to $9.46 despite Mr Packer getting approval to proceed with the project.
Why did Macquarie Group and Insurance Australia Group (IAG) shares move despite positive updates?
Macquarie fell to $30.85 even though it increased first‑half profit due to improved financial market conditions for its investment businesses, suggesting markets sometimes react to broader sentiment. IAG fell to $4.51 after saying it was on track to meet full‑year forecasts following a solid first quarter.
What other notable corporate share movements were reported and what triggered them?
Billabong shares rose (about 8.5%) after the outgoing chairman said the company remained open to takeover offers. Tatts Group fell to $2.74 after the Australian Shareholders’ Association called for a new chairman. Whitehaven Coal fell to $3.05 after the miner said it was set to become a major player—moves that reflect takeover interest, corporate governance focus and company statements.
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