Australia Market Wrap
S&P/ASX 200 pulls back to 1.5pc gain
Stronger regional markets and a rebound in the copper price ensured that the Materials index outstripped gains in the broader market, rising 5.2%. Some of this gain was erased by afternoon as jittery investors took money off the table. Other base metals strengthened.
The benchmark S&P/ASX200 Index was was up 1.4%, or 52.3 points, at 3749.6. The bourse had raced up as much as 4.4 per cent to 3858.4 in early trading.
The index reversed yesterday’s 230 point fall, or 5.86% decline which was the lowest close since October 25, 2004. The market’s falls have also qualified as the third largest in Australian sharemarket history, outstripping the 1987 collapse, second only to the Great Depression and the fall in 1972-73.
Up till today’s gains, the local market had lost 10 per cent in value, or $106 billion, over the past three sessions as concerns over a worldwide recession intensified.
All sectors of the market were higher, with materials and financials recovering much of yesterday's losses, when the market fell to its lowest since October 2004.
BHP Billiton (ASX:BHP) was up $1.50, or 6%, to $26.50, Rio Tinto (ASX:RIO) gained $4.30, or 6.2%, to $73.30, Fortescue Metals (ASX:FMG) was up 5 cents, or 2.6%, to $1.93, Oz Metals (ASX:OZL) lost 3.5 cents, or 3.8%, to 88.5 cents and Paladin Energy (ASX:PDN) rose 16 cents, or 7.5%, to $2.30.
Oil and Gold rack up gains
Woodside Petroleum (ASX:WPL) gained $1.67, or 4.5%, to $38.57 and Santos (ASX:STO) was up 68 cents, or 5.25%, to $13.63.
With spot gold trading recently at $US737.20, gold stocks were higher after the price of gold rose overnight. Lihir Gold (ASX:LGL) was up 14.5 cents, or 8.2%, to $1.92 and Newcrest Mining (ASX:NCM) rose 96 cents, or 4.8%, to $20.92.
Banks mixed
Among the banks, ANZ Bank (ASX:ANZ) was up 28 cents, or 2%, to $14.33, Commonwealth Bank (ASX:CBA) was up 80 cents, or 2.4%, to $33.80, National Bank (ASX:NAB) rose 65 cents, or 3.3%, to $20.05, Westpac (ASX:WBC) gained 13 cents, or 0.7%, to $17.10 and St George (ASX:SGB) fell 27 cents, or 1.1%, to $23.73.
Investment bank Macquarie Group (ASX:MQG) gained 85 cents, or 3.6%, to $24.45 and Babcock & Brown (ASX:BNB) was up 2 cents, or 3.6%, to 57.5 cents.
The Australian dollar also gaine, adding 2.85 US cents to trade 4.3% higher at 66.25 US cents, after Reserve Bank buying yesterday.
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