Proactiveinvestors recommends

Additional Information

Market:	ASX 200
Sector:	Investments and Funds
EPIC:	XJO

1 year chart

1 day chart

Australia Market Wrap

A summary of all the major stories on the Australian Stock Exchange

Aussie shares recover from low point, still down

Wednesday, November 19, 2008 by Proactiveinvestors

The market fell again today despite a late rally on Wall Street overnight and the lifting of a ban on short-selling.

The Reserve Bank board looks likely to cut at least three-quarters of a percentage point from interest rates when it meets again on December 2, and may even cut by a full point.

Late yesterday the futures market was pricing in a cut of one percentage point in December and a further three-quarters in February, with further cuts taking the cash rate down to 3.25% in May — which would be the lowest level since the 1950s.

The benchmark S&P/ASX200 index was down 0.7%, or 23.6 points, to 3499.

Regional markets were also weaker as Japan's Nikkei average shed 1.8%, driven in part by falling bank shares after No. 1 Mitsubishi UFJ Financial Group suffered a 61% drop in quarterly profit. The MSCI index of Asia-Pacific stocks outside of Japan dropped 1.7% and was back near a four-and-a-half-year low hit last month.

Banks regain some ground

ANZ Bank (ASX:ANZ) was up 78 cents, or 6%, to $13.82, Commonwealth Bank (ASX:CBA) was up 83 cents, or 2.8%, to $30.93, National Australian Bank (ASX:NAB) rose 53 cents, or 2.8%, to $19.68 and Westpac (ASX:WBC) was up 70 cents, or 4.5%, to $16.25.

Macquarie Group (ASX:MQG) continued rising, gaining $1.16, or 4.8%, to $25.16 and Babcock & Brown (ASX:BNB) was down 6 cents, or 19%, to 25 cents. Babcock shares fell as much as 27% in early trading. It announced a review of its strategy today.

Miners head higher then lose altitude

Australia's third-largest diversified miner OZ Minerals has responded to a query from the Australian stock exchange with a profit warning. Its shares were hammered as a result down 12.5 cents, or 17.1%, to 60.5 cents in afternoon trading.

The company was formed this year through the merger of Oxiana and Zinifex, and produces zinc, copper, nickel, gold and lead from operations in Australia and Laos.

It said in a statement today that it did not know of any information that could explain recent trading in its securities.

BHP Billiton (ASX:BHP) was down $1.00, or 4.1%, to $23.20, Rio Tinto (ASX:RIO) was down $2.10, or 3.1%, to $65.90, Oz Metals (ASX:OZL) plunged 10 cents, or 13.7%, to 63 cents, Paladin Energy (ASX:PDN) was down 16 cents, or 6.7% and Fortescue Metals lost a whopping 25.5 cents, or 15.8%, to $1.35.5.

Energy stocks were mixed. Woodside Petroleum (ASX:WPL) was down $1.06, or 3%, to $33.93 and Santos (ASX:STO) was up 7 cents, or 0.5%, to $12.82. Gold stocks were lower after spot gold fell overnight, Lihir (ASX:LGL) was down 6 cents, or 3.4%, to $1.69 and Newcrest Mining (ASX:NCM) was down 4 cents, or 0.2%, at $18.95.

The Australian dollar was also weaker, down to 64.40 US cents..

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.