Australian Sharemarket Ends Lower Amid Mixed Trading

Investors largely disregarded positive overseas cues to digest the latest raft of company results, resulting in a mixed day of trade for the Australian sharemarket. The benchmark all ordinaries index fell eight points to 2916.3, while the resource sector firmed 9.6 points to 974.2, buoyed by stronger commodity prices. Retailers weighed the market down, with Woolworths slumping 37 cents to $5.18 after delivering a worse-than-expected first half profit and a flat outlook for the full year.

Key Takeaways:

• The Australian sharemarket ended lower, with the benchmark all ordinaries index falling eight points to 2916.3.
• The resource sector firmed 9.6 points to 974.2, driven by stronger commodity prices.
• Retailers, including Woolworths and Coles Myer, weighed the market down, with Woolworths slumping 37 cents to $5.18.
• Bank stocks, including Westpac and National Australia, were down across the board.
• Insurance stocks, including AMP and QBE, had a mixed day, with AMP jumping 32.1 cents to $19.58 and QBE slumping 45 cents to $6.15.
• Resources giant BHP surged 32 cents to $12.06, boosting market confidence with news that its hot briquette iron plant at Port Hedland produced its first batch of briquettes.
• Aluminium producer Comalco dipped 15 cents to $5.70 after delivering an improved full year result but forecasting a difficult short-term outlook for the aluminium market.

Statistics:

• The all ordinaries index fell eight points to 2916.3.
• The resource sector firmed 9.6 points to 974.2.
• Woolworths slumped 37 cents to $5.18.
• Coles Myer offloaded 32 cents to $8.81.
• BHP surged 32 cents to $12.06.
• Comalco dipped 15 cents to $5.70.
• Preliminary national turnover was 483.59 million shares traded for $A1.94 billion ($US1.24 billion).
• Rising stocks outnumbered falling stocks 648 to 639, with 462 stocks remaining steady.

Sources:

• "The Australian" newspaper
• COMTEX (http://www.comtexnews.com)
• ASIA PULSE (C) 1999 Asia Pulse Pte Ltd