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Monday 20

November, 201711:26 AM



Miners put brakes on market's gains

Miners put brakes on market's gains

The local share market has retreated from a five month high hit earlier in the day, due to falls by the big miners.

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By AAP 19.10.2017 05:18 PM

The share market has for a second consecutive day fallen back after breaking through 5,900 points, as significant falls by the big miners almost outweighed gains in most other market sectors.

The benchmark S&P/ASX200 index closed 0.1 per cent higher at 5,896.1 points, amid a flurry of company and economic news, and deteriorating base metal prices.

Citi director of equity sales Karen Jorritsma said strong September jobs data and equally positive Chinese economic growth figures were a positive for the market.

Despite a fall in afternoon trade, the trend for the market is positive, she said.

"With the market bullish on offshore growth the Australian market has strong momentum to look ahead to," Ms Jorritsma said.

A drop in the unemployment rate to 5.5 per cent in September also temporarily boosted the Australian dollar, which hit a high of 78.72 US cents before moderating in afternoon trade.

China's economy grew at an annual rate of 6.8 per cent in the September quarter, but after a week of strong gains mining stocks were hit by weaker commodity prices, and the impact of fraud allegations levelled against Rio Tinto and several former executives.

Rio dropped 2.5 per cent to $69.12, BHP Billiton shed 2.3 per cent to $26.56 and Fortescue Metals was 1.2 per cent lower at $4.85

South32 dropped 2.5 per cent to $3.15 after warning shareholders of cost pressures from rising raw material and a weaker US dollar.

Woodside Petroleum declined 1.8 per cent to $29.25 after posting a drop in third quarter production and lowering the top end of its full year guidance range.

Santos gained 1.2 per cent to $4.28 after narrowing its full year production and sales guidance.

ANZ led the banks, adding 0.8 per cent to $30.60, while QBE Insurance gained 2.8 per cent to $10.91 and NIB Holdings gained 2.5 per cent to $6.24.

Domino's Pizza was one of the best performers, gaining 3.5 per cent to $49.35 after buying a German pizza chain.

Crown Resorts continued to slide following claims made under parliamentary privilege that it has tampered with poker machines to increase losses, dropping 2.9 per cent to an eight month low of $10.92.

ON THE ASX:

* The benchmark S&P/ASX200 was up 5.6 points, or 0.1 per cent, at 5,896.1 points 1630 AEDT.

* The broader All Ordinaries index was up 5 points, or 0.08 per cent, at 5,959.8 points.

* The SPI200 futures contract was up 6 points, or 0.1 per cent, at 5,876 points.

* National turnover was 4.8 billion securities traded, worth $6.6 billion.

CURRENCY SNAPSHOT AT 1700 AEDT

* 78.51 US cents, from 78.45 US cents on Wednesday

* 88.71 Japanese yen, from 88.09 yen

* 66.54 euro cents, from 66.68 euro cents

* 59.44 British pence, from 59.52 pence

* 111.03 NZ cents, from 109.63 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEDT was $US1277.79 per fine ounce, down from $US1283.86 per fine ounce on Wednesday

BOND SNAPSHOT AT 1630 AEDT:

* CGS 4.50 per cent April 2020, 2.0084pct, from 1.9721ct on Wedneesday

* CGS 4.75pct April 2027, 2.7161pct, from 2.6787pct

SYDNEY FUTURES EXCHANGE PRICES:

* December 2017 10-year bond futures contract at 97.21 (implying a yield of 2.79pct), from 97.25 (2.75pct) on Wednesday

* December 2017 3-year bond futures contract was at 97.86 (2.14pct), from 97.9 (2.1pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)

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