Fear Of Attacks Decline
Overview: Equities Getting Steady as Fear of US Attack Declines
The stock market hit an uphill climbed yesterday to close flat as panic about the US attack on Syria eased down a bit. Data from the Australia Bureau of Statistics showed private capital expenditures increased by four percent at the end of the 2nd quarter, June. This was contrary to projections of a flat finish for the period.
The share market ended higher this week as investor caution again US military attack have been eased. Shares were buoyed by a lead on Wall Street which boosted higher than what was expected.
The economic performance of the US and British parliament's veto against a military strike in Syria helped buoy up the market as expounded by stock analyst, Steve Daghlian.
"When the British parliament voted against using military force in Syria, it played a great part in easing concerns that there might be a strike in the next couple of days. These news played favorably in the markets." Daghlian added.
Other indicators would include the S&P/ASX 200 index that rose up 0.1 percent to 5092.4 points, while All Ordinaries index rose 0.1 percent to 5083.1 points.
“The changed in category from “imminent” to “measured” on the apparent strike of Syria have relieved equities from being battered out of the market. This started when news of the US attack on Syria escalated,” said IG analyst Stan Shamu.
“But investors were apprehensive in treading the waters and were simply staying on the sidelines, watching,” Shamu said further.
The material sector has mixed results, with the larger mining groups leading the pack. BHP Billiton was up 1.58 percent to $35.35 and Rio Tinto rose 0.15 percent to $58.25. Fortescue Metal was up 2.13 percent to $4.31.
Among the losers were: Whitehaven was down 0.26 percent to $1.94 and Newcrest shed 2.11 percent to $13.45.
The energy sector showed upward movements with Santos up 1.1 percent to $14, Oil Search rose 1.34 percent to $8.34, and Woodside went up by 0.66 percent to $38.21.
Financials seemed not to be doing well, with mostly lower figures. Among the gainers were – National Australia Bank was up 0.12 percent to $32.36 and Wespackrose rose 0.35 percent to $31.22.
The losers were – Commonwealth Bank down 0.28 percent to $72.05 and ANZ lost 0.57 percent to $29.47
The insurance sector did not do good as well – with QBE down 0.92 percent to $15.12, Insurance Australia Group fell .17 percent $5.77 and Suncorp skid down 0.33 percent to $12.22.
The retail sector got mixed outcome. The gainers include Woolworths was up 2.31 per cent to $35.39, David Jones added 0.71 percent to $2.84 after a declaring a slight decrease in sales. JB Hi-Fi was up 0.48 percent to $18.80.
The losers include: Wesfarmers was down 0.02 percent to $40.08, Myer slid down to .74 per cent to $2.69.
Harvey Norman remained flat at $2.88
In media, the losers far outnumber the gainers: Fairfax Media down 0.9 per cent to 55c, 21st Century Fox dipped 0.82 per cent to $35.11, Ten Network slid down 3.33 per cent to 29c, and Southern Cross Media dipped 0.58 per cent to $1.70
The only gainer is Seven West that added 0.85 percent to $2.37.
In the airline sector, Qantas was up 13.82 per cent to $1.40 after declaring a year end profit despite apprehensions on economic uncertainty.
At the other end, Telstra dipped 0.62 per cent to $4.84.
The dollar was boosted higher due to strong investments by the business sector. The local currency hit US89.58c as against the US89.14c exchange rate which was reported late Wednesday at 5pm AEST.
“The local currency was pumped up by capex data, but not yet as much as expected,” said research analyst Chris Tedder.
"We've been bolstered by the unexpected increase in capital expenditures, but while this trend is good, it did not really have that much impetus to lift the Aussie market out of the doldrums – as much as we would want to see. This still highlights some of the underlying weakness in the Aussie economy," said Tedder.
He clarified, “The markets are still consolidating after fears of a probable US attack on Syria scared investors to shift into safe-haven investments earlier this week.”
Tedder finally concluded, “There were no changes that were seen overnight , so what we are seeing is an across the board retracement. What resulted is that oil prices came down, gold plummeted down, and the forex markets rebounded a bit. So we can say, that there was a bit of retracement across the board over the last few days."