Australian Sharemarket Closes Lower but Off Its Depths Amid International Weakness

Strategic Insights -

The Australian sharemarket closed lower on the day but off its depths, thanks to a combination of positive domestic statistics and a recovery in the long bond rate. The all ordinaries index closed 17.2 points or 0.61 per cent lower at 2804.8, with market heavyweight News Corp tempering the early fall after releasing earnings figures for the video release Titanic.

Key Takeaways:

  • The Australian Bureau of Statistics reported a significant rise in employment in December, with a seasonally adjusted increase of 53,600 and an eight-year low in the unemployment rate of 7.5 per cent.
  • The Australian sharemarket opened sharply lower due to international weakness, but improved during the day driven by positive Australia statistics and a recovery in the long bond rate.
  • News Corp's share price rose against the downward trend on the back of earnings figures for the video release Titanic, limiting the industrial sector losses.
  • BHP led the resources sector down with a 56.8 per cent or 4.44 per cent drop to $12.226, while weaker commodity prices also impacted the all resources index.
  • Commonwealth Bank of Australia fell 21.6 to $22.15, while ANZ Banking Group lost 21 to $10.22, and Westpac Banking Corp dropped 15 to $10.90.

Statistics:

  • The all ordinaries index closed 17.2 points or 0.61 per cent lower at 2804.8.
  • The national turnover was 370.04 million shares valued at $1.07 billion, with 668 falls outnumbering 457 rises and 409 steady stocks.
  • The all industrials index lost 12.6 points to 5031.3, with News Corp gaining 25.2, or 2.54 per cent, to 10.712.
  • BHP dropped 56.8 or 4.44 per cent to $12.226, and the all resources index shed 25.7 points to 986.1.

Sources:

  • "Australian sharemarket closes lower but off its depths" (The Australian, January 14, 1999)
  • Australian Bureau of Statistics
  • Ausbil Partners equities director Paul Xiradis
  • Australian Shareholders Association
  • Asia Pulse (C) 1999 Asia Pulse Pte Ltd News Provided by COMTEX (http://www.comtexnews.com)