Close Australian shares have ended slightly lower, well off the day's lows after a jump in Telstra, but investors remained wary over tensions in the Korean peninsula.
The benchmark S&P/ASX200 Index was down 4.4 points, or 0.1 per cent, to 4584.7, while the broader All Ordinaries Index slipped 3.7 points, or 0.1 per cent, to 4673.2.
On a sector-by-sector basis, telecoms jumped 1.3 per cent, while materials and financials both slipped 0.1 per cent.
need2know:
- The dollar recovers to around 98 US cents
- Asian shares rebound as Korea tensions ease
- Oil edges towards $US82 a barrel
- Gold hovers below $US1380 an ounce
- Dow futures are 40 points higher at 11,054
The market opened lower on negative sentiment from offshore markets, with the artillery exchange between North Korea and South Korea adding to risk-averse attitudes.
As local trading continued most stocks, with the exception of the big miners, rebounded.
NBN to come in $7b cheaper
‘‘It really feels like the market is looking beyond the concerns of the moment, which we have faced before, and viewing today as an opportunity to finally put cash that has been sitting on the sidelines to work,’’ CMC Markets institutional equities dealer David Barrett-Lennard said.
The best performer of the day was Telstra, adding to yesterday's gains with a rise of 4 cents, or 1.5 per cent, to $2.78.
That came as the federal government released its NBN business plan which showed the broadband network could be built $7 billion cheaper than first estimated. After the release of the documents independent senator Nick Xenophon said he would back government for legislation paving the way for the telco to participate in the NBN.
BHP Billiton lost 19 cents to $42.95 and Rio Tinto shed $1.04 to $82.49. Fortescue Metals gained 5 cents to $6.45.
Newcrest Mining added 26 cents to $$39.67 as the gold price rose due to uncertainty in global markets.
Three banks down, one up
Westpac was the best of the banks, adding 9 cents to $21.40 after opening lower. The other banks also improved through the day but closed lower, with Commonwealth losing 3 cents at $48.15, ANZ dropping 6 cents to $22.28 and National Australia Bank 11 cents lower at $23.45.
‘‘Sentiment is a funny thing and can change like the flick of a switch and this afternoon’s trade may in fact be signalling the start of a new upwards leg,’’ IG Markets strategist Ben Potter said.
Making news, Virgin Blue said trading conditions were improving and flagged capacity growth in the current year, but cautioned the outlook was volatile. Its shares gained 1 cent to 44.5 cents, while rival Qantas lost 1 cent to $2.63.
Programmed Maintenance Services reported a $3.07 million first half loss but said demand for its services should pick up next year. Its shares lost 4.5 cents, or 3.5 per cent, to $1.24.
Pike River Coal shares remain suspended at 61 cents as officials confirmed all 29 miners trapped in its mine are dead after a second explosion.
New Zealand Oil and Gas, a major Pike River Coal shareholder, was up half a cent to 69.5 cents before it was placed in a trading halt this afternoon following the news of the fatalities at the Pike River mine.
The most traded stock by volume was Telstra, with 100.9 million shares worth $279.4 million changing hands.
Preliminary market turnover was 2.64 billion shares worth $6.09 billion, with 460 up, 627 down and 397 unchanged.
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AAP, with BusinessDay