Close Australian shares fell today as economic concerns weighed on investors, while a brief spike on the back of a contributor error sent the index more than 500 points higher.
At the close, the benchmark S&P/ASX200 index was down 28.5 points, or 0.6 per cent, lower at 4384.5, while the broader All Ordinaries fell 29.7 points, or 0.7 per cent, to 4409.7.
Materials fell 0.8 per cent, financials slid 0.7 per cent, while energy shares dropped 0.4 per cent.
need2know:
- Asian shares flat after G20 meeting
- The dollar rises to 87.6 US cents
- Gold ticks up to $US1256; eyes record
- Oil climbs to 8-week high, above $US79
- Dow futures are 10 points higher at 10,115
The market jumped 13.4 per cent during the morning trade to 5012.8, its best since mid-April, after market contributor Standard & Poor's received some erroneous pricing information from its data provider, market operator ASX said.
"There were no trades, it was simply erroneous prices which affected the index only," ASX spokesperson Leeanne Bland said, adding it was not yet known whether the figure would be erased as the day's high.
Directionless trading
The market's reaction to the weekend summit of G20 leaders was muted while a minor cabinet reshuffle by new Prime Minister Julia Gillard also had little impact. Traders described activity as directionless, with volumes low.
The main reason for the market weakness may have been tax-related selling ahead of June 30, where investors sell stocks that have lost value over the course of the financial year in order to offset capital gains and lower tax liability.
‘‘There’s absolutely nothing happening in the local market today,’’ IG Markets strategist Ben Potter said. ‘‘The only plausible reasons we’ve heard justifying today’s weakness is possible tax-loss selling as well as some concern over divergent views emanating out of the G20 meeting.’’
RBS Morgans private client adviser Bill Bishop said speculation about the future of the federal government’s resources super profits and the prospect of an election added to investor caution.
‘‘We’re in election mode; that’s part of the situation now,’’ Mr Bishop said. ‘‘Markets always get a bit wishy-washy when they’re in election mode.
‘‘You’ve also got the headwinds from the usual suspects, Europe and America, and so the market is just very uncertain of its direction.’’
Banks run out of puff
The major banks opened higher but fell by mid-morning. National Australia Bank lost 27 cents, or 1.1 per cent, to close at $23.53, Westpac dropped 24 cents, or 1.1 per cent, to $21.51, ANZ shed 18 cents, or 0.8 per cent, to $22.29 and Commonwealth ended 5 cents lower at $49.95.
Energy stocks illustrated the market’s lack of direction, with Woodside Petroleum flat at $43.28, Santos down four cents at $12.66 and Oil Search up 2 cents at $5.72.
The major mining stocks closed lower, with Rio Tinto losing $1.00 to $68.60 and BHP Billiton shedding 31 cents to $38.49.
Several smaller materials and mining stocks performed better, including Fortescue Metals, up 6 cents at $4.42, Alumina, up 2.5 cents to $1.61 and chemicals maker Orica, up 24 cents at $25.35.
Among the gold stocks, Newcrest Mining lost eight cents to $35.92 and Lihir Gold dropped 3 cents to $4.41.
Wattyl soars
In news, paint maker Wattyl accepted a $142 million all cash takeover bid from US paint giant The Valspar Corporation. Valspar agreed to pay $1.67 a share, compared with Wattyl’s closing price on Friday of $1.26. Wattyl shares gained 35.5 cents, or 28.2 per cent, after the announcement, to $1.615.
Ports and rail operator Asciano Group said it had completed the restructuring of its bank facilities. Asciano shares gained 1.5 cents to $1.69.
The highest traded stock by volume was Telstra, with 35.46 million shares traded for $116.6 million. Shares in Telstra lost 1 cent to $3.29.
Preliminary market turnover was 1.61 billion shares exchanged for $3.89 billion with 387 stocks up, 734 down and 419 unchanged.
- For market data by sector, click here
- For share price information, click here
- For the latest currency movements, click here
BusinessDay, with wires