Stocks sink to two-week low

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 11 years ago

Stocks sink to two-week low

Australian shares dropped for a third consecutive day, ending at a two-week closing low, as slackening Chinese import growth and soft US jobs data renewed worries about a stalling economic recovery.

China is Australia's top trade partner and key consumer of its resources. Data showed Chinese imports grew 5.3 percent from a year ago, far below a 9 percent forecast.

That pushed commodity prices lower on worries about demand outlook for the leading importer of raw materials and hurt mining stocks, the biggest drag on the index.

The benchmark S&P/ASX200 index was down 27.5 points, or 0.64 per cent, at 4,292.3 points, while the broader All Ordinaries index fell 28.6 points, or 0.65 per cent, to 4373.7 points.

"The next directional driver will be the U.S. March quarter corporate earnings season that starts tonight," Ben Taylor, trader at CMC Markets said.

He said globally share prices have factored in the possibility of a US economic recovery and will now struggle to find the next trigger with both developed and emerging economies under pressure.

CMC Markets sales trader Ben Taylor said the local market opened firmly in the red in reaction to US non-farm payroll figures that showed 120,000 jobs were created in March, well below the 200,000 forecast by economists.

‘‘The payroll result missed expectations and sent the markets into retreat mode,’’ Mr Taylor said.

He said Australian job advertisement figures released today showed that businesses planned to expand as confidence and conditions continued to improve, and pointed to a modest rise in the unemployment rate to 5.3 per cent, from 5.2 per cent.

Austar, Foxtel

Shares in regional pay-TV firm Austar United Communications bucked the trend to rise after the competition regulator cleared a $US1.9 billion takeover by larger rival Foxtel, after Foxtel agreed to broaden its concessions..

Gold stocks were the other stand out as the price of gold hit a one-week high. Newcrest Mining climbed 2.7 percent to $28.80.

The spot price of gold in Sydney at 1636 AEST was $US1,651.80 per fine ounce, up $US27.33 from Thursday’s local close of $US1,624.47.

Market heavyweight BHP Billiton was down 19 cents at $34.25, Rio Tinto was 44 cents lower at $64.85, Fortescue gave up eight cents, or 1.37 per cent, at $5.78 and OZ Minerals fell 23 cents, or 2.39 per cent, to $9.39.

The major banks were all weaker, with National Australia Bank faring the worst, down 0.8 per cent at $24.58.

In the energy sector, Santos was 10 cents cheaper at $14.08 and Woodside was down 49 cents, or 1.39 per cent, at $34.69 after it pushed back the final decision date for its proposed $30 billion Browse liquefied natural gas project by at least six months.

Shares in Energy Resources of Australia gained 1.2 percent to $1.275 after the company lifted its production forecast for 2012 uranium oxide to between 3,200 and 3,700 tonnes, up from a range of 3,000 to 3,700 tonnes.

National turnover was 1.92 billion shares worth $3.63 billion, with 321 stocks up, 681 down and 393 unchanged.

On the ASX 24 at 1643 AEST, the June share price index futures contract was eight points lower at 4,307 points, with 22,561 contracts traded.

AAP, Reuters

Most Viewed in Business

Loading