The Australian sharemarket is largely flat at noon, despite mining stocks rallying on the back of a surge in the iron ore price overnight, as financial stocks weigh on the bourse.
At 12.05pm (AEST), the benchmark S&P/ASX200 index was 4.5 points, or 0.08 per cent, lower at 5833, while the broader All Ordinaries index was down 3.8 points, or 0.07 per cent, at 5809.
Despite strong leads and a booming iron ore rebound, the Australian sharemarket was struggling for direction, and trading marginally lower as HSBC’s Chinese PMI data was released at midday.
The PMI figures showed activity in China’s manufacturing sector declined more than expected to a 12-month low in April.
In local economic news on today, the National Australia Bank’s quarterly business survey showed confidence and conditions both lapsed in the first quarter of the year, as Australia struggles to transition away from a patchwork economy.
Materials were the best performing sector after a strong rally in the iron ore price overnight.
The commodity hasn’t seen a red session in the past five trading days and is enjoying its best two-week streak this year. The price has jumped 13.3 per cent from the 10-year low it reached earlier in the month.
The sector was 0.91 per cent higher.
BHP Billiton surged 1.97 per cent to $30.865, while Rio Tinto lifted 1.54 per cent to $56.05.
BC Iron surged 42.31 per cent to 37c after saying it will continue to make pragmatic decisions in the face of sustained weakness in the iron ore price.
Fortescue rallied 10.76 per cent to $2.11 after it upsized its high-yield bond offering to $US2.3 billion due to high demand.
Newcrest lost 1.03 per cent to $14.45 after upgrading its full-year copper production outlook and reducing its capital spending forecast.
Energy stocks also gained, adding 0.23 per cent.
Oil Search surged 0.88 per cent to $8.03.
Santos slipped 0.19 per cent to $7.725, while Woodside Petroleum edged down 0.03 per cent at $34.51.
However, weakness across the rest of the local bourse largely offset gains in resources stocks.
Financials pushed 0.37 per cent lower collectively.
ANZ lost 0.56 per cent to $35.29, while Commonwealth Bank shed 0.14 per cent to $90.99.
National Australia Bank retreated 1 per cent to $37.73, while Westpac gave up 0.44 per cent to $38.12.
Consumer staples lost 0.28 per cent.
Woolworths retreated 0.11 per cent to $28.23, while Wesfarmers lost 0.49 per cent to $42.24.
Meanwhile, Qantas gave up 0.89 per cent to $3.33, and Telstra slipped 0.08 per cent to $6.245.
In Australia, the market on Wednesday closed lower as investors reduce their expectations of a May interest rate cut.
source: http://www.theaustralian.com.au