Australian Share Market Tumbles Amid Profit Taking and Asian Market Weakness

Strategic Insights -

The Australian share market ended the day in the red, with the benchmark all ordinaries closing 17 points lower at 2,815.6 due to profit taking, weak Asian markets, and arbitraging. Profit taking was evident in several major stocks, including Telstra, which closed down 22 cents after reaching a peak of 7.95 Australian dollars earlier in the day. Other telecom stocks remained buoyant, with Cable & Wireless Optus surging 13 cents and AAPT adding 15 cents.

Key Takeaways:

  • The Australian share market ended the day in negative territory, with the benchmark all ordinaries closing 17 points lower at 2,815.6.
  • Profit taking was the main reason for the market's decline, with several major stocks experiencing a sharp turnaround in afternoon trade.
  • The Nikkei 225 index closed down 183.15 points at 13,232.74, reflecting rising concern over the yen's current strength and its impact on the market.
  • Other factors contributing to the market's decline included weak Asian markets and arbitraging.
  • The resource sector was hit hard, with BHP slumping 43 cents, Rio Tinto fell 22, WMC shed 13 and MIM eased one cent.
  • The gold index retreated 8.8 to 1,114.3, while the price of gold bullion in Sydney closed at 287.05 U.S. dollars an ounce, compared with a close of 288.40 Monday.
  • National turnover reached 410.05 million shares traded for 1.45 billion Australian dollars (906.25 million U.S. dollars), with falling stocks outnumbering rising stocks 608 to 567 and 437 stocks steady.

Statistics:

  • The all ordinaries closed 17 points lower at 2,815.6.
  • The all industrials index shed 16.3 points to 5,084.5.
  • The all resources index dropped 21.1 points to 953.3.
  • Telstra closed down 22 cents.
  • Cable & Wireless Optus surged 13 cents.
  • AAPT added 15 cents.
  • National Australia Bank gained 33.1 cents.
  • National turnover reached 410.05 million shares traded.
  • Falling stocks outnumbered rising stocks 608 to 567.
  • 437 stocks were steady.
  • The price of gold bullion in Sydney closed at 287.05 U.S. dollars an ounce.

Sources:

  • XINHUA
  • COMTEX (http://www.comtexnews.com)