Australian stocks closed 0.5 percent weaker on Friday after easing commodity prices dragged down the mining sector although the sentiment remained positive following solid gains for the week. BHP Billiton and Rio Tinto fell 1.7 percent and 1.1 percent respectively after prices for gold, oil and base metals all fell overnight after a mixed bag of US data spooked investors.
The session was a sharp contrast to Thursday's 1.3 percent gains following a rally in commodity prices. "There's no significant catalyst overnight to justify ongoing strength on the back of yesterday's improvements, so we're just seeing markets trade a bit sideways," said Shaw Stockbroking senior dealer Jamie Spiteri.
The benchmark S&P/ASX 200 index closed down 24.21 points at 4,732.2, according to the latest available data. New Zealand's benchmark NZX 50 index continued the rally which has seen it push to a three-year high, gaining 8.4 points to 3,577.443, after domestic markets generally approved of the government's budget delivered on Thursday, which promised to return to surplus by 2014/15 amid forecasts of faster growth over the next few years.
Most major mining, steel and energy stocks closed lower. Newcrest Mining finished 0.8 percent weaker at A$38.47, while Fortescue lost 0.8 percent to A$6.44. Pallet operator Brambles rose 1.4 percent after reaffirming guidance and reporting higher third quarter revenues on Thursday. Qantas shares were little impacted by news one of its aircraft returned to Bangkok after an engine was shut down. The stock closed 0.5 percent lower at A$2.11. Virgin Australia fell 1.6 percent.
Comments
Comments are closed for this article.