Australian shares slipped 0.2 percent on Friday, taking losses to the second straight week as investors fretted over Ireland's debt woes and a possible Chinese interest rate hike.
Investors sentiment was also weakened after the country's top IPO in more than a decade was indicated to have pulled in bids at the lower end of the indicated range. [ID:nSGE6AH0K2]
But dominant telephone firm Telstra (TLS.AX
TELSTRA FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
2.620 +0.060 +2.340%
* Company overview
* Real-time quote
TLS.AX , 2.620, +0.060, +2.340%) bucked the trend, gaining 2.3 percent after it affirmed its earnings and dividend guidance, and said it was addressing the problems which it viewed had led to a "materially undervalued" stock. [ID:nSGE6AH0K0].
The benchmark S&P/ASX 200 index (.AXJO
S&P/ASX 20019 November,2010
19/11/2010 21:11 Sydney, Australia.
Value Change % Change
4629.2 -10.9 -0.2%
* Australian indices
* International indices
.AXJO , 4629.2, -10.9, -0.2%) lost 10.95 points to 4,629.20, according to latest available data after slipping in late trade as investors closed positions. It lost 0.7 percent for the week.
"Markets remain on edge as the increase in volatility and low volumes this week can attest," David Taylor, an analyst at CMC Markets said, referring to the waning risk appetite and late sell off.
"It's likely attention will remain on the three 'flash points' of the world international stage: Ireland and the euro zone, China and the US," he added.
Uncertainty about the Irish crisis eased after Dublin agreed to work with a European Union-International Monetary Fund mission on steps to shore up its battered banking sector. [ID:nLDE6AH0HV] [ID:nLDE68T0MG].
But investors remained sceptical that any rebound in risk appetite would be sustained, with fiscal problems still severe in Ireland and other peripheral euro zone countries, and many investors inclined to cut risk exposure before year-end.
Global miners BHP Billiton (BHP.AX
BHP BLT FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
43.610 -0.190 -0.430%
* Company overview
* Real-time quote
BHP.AX , 43.610, -0.190, -0.430%) fell 0.4 percent and Rio Tinto (RIO.AX
RIO TINTO FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
84.300 -0.100 -0.120%
* Company overview
* Real-time quote
RIO.AX , 84.300, -0.100, -0.120%) slipped 0.1 percent on concerns about a Chinese rate hike. China is the biggest consumer of Australian resources. Separately, consultations with Australia's mining industry on a planned profits-based tax have concluded, the government said, adding negotiations were "constructive" [ID:nSYU010699].
Bank shares fell on European woes as investors feared the cost of fund will rise more for deposit deficient Australian banks. No.2 lender and top offshore debt issuer Commonwealth bank of Australia (CBA.AX
CWLTH BANK FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
48.810 -0.710 -1.430%
* Company overview
* Real-time quote
CBA.AX , 48.810, -0.710, -1.430%) led losses with a 1.4 percent fall at A$48.81.
Murchison Metals (MMX.AX
MURCHISONM FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
1.220 +0.055 +4.720%
* Company overview
* Real-time quote
MMX.AX , 1.220, +0.055, +4.720%) jumped 4.7 percent to A$1.22 after it said it had secured a $100 million bridge finance facility.
Oil and gas explorer Karoon Gas (KAR.AX
KAROON FPO19 November,2010
19/11/2010 21:11 Sydney, Australia.
Price Change % Change
8 +0.100 +1.270%
* Company overview
* Real-time quote
KAR.AX , 8, +0.100, +1.270%) fell as much as 9 percent to A$7.15 during trade after it scrapped a $1 billion float at its Brazilian unit, citing poor market conditions. [ID:nSGE6AH0KX]. But recovered to close 1.3 percent higher as investors felt the more than 20 percent fall since Nov 5 as excessive.
New Zealand's benchmark NZX 50 index <.NZ50> fell 0.38 percent to 3,268.15. (Reporting by Narayanan Somasundaram & Adrian Bathgate; editing by Balazs Koranyi)
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