THE Australian share market has closed lower as low iron ore prices weighed upon the big miners and the weaker Australian dollar continued to deter foreign investors. Also, trading volumes were low due to public holidays across half the country.
Lonsec senior client adviser Michael Heffernan said the local bourse headed downwards despite a positive lead from markets in the United States and Europe on Friday.
“Clearly, the major mover down is the resources stocks — BHP and Rio,” Mr Heffernan said.
“It’s related to the iron ore price.” Iron ore prices slumped to below $US79 a tonne over the weekend. More generally, he said, the resources sector would continue to feel pressure until the global economy showed stronger signs of growth.
Mr Heffernan said other blue chip stocks such as the big banks continued to suffer as foreign investors pulled out of the Australian market in the wake of a weakening Australian dollar. In the resources sector, global miner BHP Billiton backtracked 75 cents to $32.70 as it unveiled plans to slash its iron ore production costs by a quarter and possibly increase output, with the commodity’s price at five-year lows.
Rio Tinto was $1.21 lower at $57.59, and Fortescue Metals was down 15 cents at $3.30, according to preliminary closing data. In the banking sector, Commonwealth Bank fell 48 cents to $76.17, National Australia Bank dropped 26 cents to $32.71, ANZ eased nine cents to $31.55, and Westpac dumped 17 cents at $32.42. Telstra nudged up one cent to $5.40 after it completed its $1 billion share buyback, with the offer oversubscribed by almost 70 per cent.
KEY FACTS
* At 1616 AEDT on Monday, according to preliminary closing figures, the benchmark S&P/ASX200 index had lost 25.3 points, or 0.48 per cent, to 5,292.9 points.
* The broader All Ordinaries index lost 22.8 points, or 0.43 per cent, to 5,292.6 points.
* The December share price index futures contract was 38 points lower at 5,281 points, with 15,648 contracts traded.
* National turnover was 900.3 million securities worth $1.8 billion.
Source: The Australian
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.