Australian markets review

STOCKS closed flat today after losses were cut as investors fed on shares weakened by worry over the Korean conflict and European debt.

The benchmark S&P/ASX 200 bounced back from an earlier low of 4551, to be down 4.4 points, or 0.1 per cent, at 4584.7 for the close.

The broader All Ordinaries index lost 3.7 points (0.08 per cent) to 4673.2 points, well off its low of 4638.

On the ASX24, the December share price index futures contract was 10 points lower at 4595, with 36,113 contracts traded.

The market opened lower on negative sentiment from offshore markets, as military conflict between North Korea and South Korea added to risk-averse attitudes.

Most stocks rebounded as local trading continued, with the exception of the big miners.

Said CMC Markets institutional equities dealer David Barrett-Lennard: “It really feels like the market is looking beyond the concerns of the moment, which we have faced before, and viewing today as an opportunity to finally put cash that has been sitting on the sidelines to work.”

The day’s best performer was Telstra, which rose 4 cents (1.46 per cent) to $2.78. The jump came as federal government legislation paving the way for the telco to participate in the NBN won the support of independent senator Nick Xenophon.

BHP Billiton lost 19c to $42.95, Rio Tinto shed $1.04 to $82.49 and Fortescue Metals gained 5c to $6.45.

Newcrest Mining added 26c to $$39.67 as the gold price rose due to uncertainty in global markets.

The spot price of gold in Sydney at 1622 AEDT was $US1375 per ounce, up $US15.64 from yesterday’s close.

Westpac was the best of the banks, adding 9c to $21.40 after opening lower.

The other banks also improved through the day but closed lower, with Commonwealth losing 3c at $48.15, ANZ dropping 6c to $22.28 and National Australia Bank 11c lower at $23.45.

Said IG Markets strategist Ben Potter: “Sentiment is a funny thing and can change like the flick of a switch and this afternoon's trade may in fact be signalling the start of a new upward leg."

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