All Ordinaries Index (XAO) closed 9 points lower yesterday,
but after another strong session in the U.S and with European
markets hitting a fresh 8-month high, our market opened higher
this morning. But it have already fallen into the red and by
lunchtime The All Ordinaries Index (XAO) had lost ground and is
currently off 0.23 pct or 10 points to 4356.7. Volumes are very
light and are expected to stay that way throughout the day ahead
of a raft of key economic data out in the U.S. tonight and next
Yesterday, the mining sector was the biggest drag on trade, as
a stronger US dollar pushed base metal and precious metal prices
down. Overnight gold, silver and base metal prices regained some
lost ground with gold adding US$16 an ounce to US$1,660 an ounce.
Base metals prices generally rose by 1.0-1.3 pct, on the London
Metals Exchange (LME), as the US dollar lost ground against major
currencies and copper added 1.3 pct. on the Comex Exchange in New
BHP Billiton (
) shares were lower in early trade today on news that the Port
and mining communities surrounding Port Hedland in Western
Australia prepares for the possible evacuation as tropical
Cyclone Lua heads toward the Pilbara coast.
BHP shares are off 0.88 pct. to $34.87 and Fortescue Metals (FMG)
off 2.01pct or 12 cents to $5.86, while Rio Tinto (
) are is slightly higher.
The gold producers struggled yesterday but have started to
regain some ground this morning. Australia's largest listed gold
miner, Newcrest Mining Limited (NCM) came up 0.1 pct. to $30.30.
St Barbara Limited (
) up nearly 1 pct. to $2.11, Kingsgate Consolidated Limited (KCN)
up 1.67 pct. and Alacer Gold Corporation (AQG) higher by
Cash is going into health care, telecommunication and food and
beverage retail stocks. Wesfarmers Limited (
), owner of Coles and Bunning's stores is up 0.07 pct. to $28.88
and Woolworths Limited (WOW) up 0.7 pct to $25.72, while Telstra
having a nice run in early trade up $1.50 to $3.26.
Department store retailer Myer Holdings (MYR) hit again today
after it announced a weaker than expected sales and profit result
yesterday. Net Profit after Tax (NPAT) of $88million, off 17.5%,
and sales down 3 pct. Myers shares fell 3.3 pct. yesterday and
now down 2.6 pct to $2.23. Myer rival in the discretionary retail
space David Jones Limited (DJS) shares are lower by 0.4 pct to
$2.74 and shares of shopping mall operator Westfield Group (
) down 1.2% to $8.76.
S&P/ASX 200 Financials Index off 0.26 pct or 10 index
points. The big 4 banks mixed with Commonwealth Bank of Australia
(CBA) off 0.5 pct or 33 cents to $48.73, ANZ Banking Group (ANZ)
up 0.31pct to $22.35, and National Australia Bank (NAB) only
slightly higher. Moody´s cuts Macquarie Group Ltd.´s (MQG) senior
debt rating to A3 from A2 and Mac shares off 0.44 pct to $27.30 a
No major economic data was released in the region today.
Juliana Roadley, CommSec Market Analyst
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