SYDNEY: The sharemarket lost ground at the open, following falls on international markets after China unexpectedly devalued its currency and as CBA became the latest of the big four banks to boost its capital.
At the 10.15am (AEST) official market open, the benchmark S & P/ASX200 was 12.1 points, or 0.22 per cent, lower at 5461.1 points, while the broader All Ordinaries index slipped 11.9 points, or 0.22 per cent, to 5461.2 points.
CMC chief market analyst Ric Spooner said CBA’s $5bn equity raising did not come as a surprise to many, but warned investors will be anxious about its impact on the banking sector this morning.
“A key issue for the short term will be the extent to which other bank stocks might be sold to make way for an increased allocation to CBA in investor portfolios,” he said.
Meanwhile, Mr Spooner noted that China’s surprise devaluation yesterday had seen both commodities and commodity currencies such as the Australian dollar sold.
