SYDNEY: The Australian stocks started 0.44 percent weaker, Commodity prices and a soft finish on Wall Street weighed down by falling.
At the official 10.15am (AEDT) market open, the benchmark S&P/ASX200 index was down 24 points, or 0.44 per cent, to open at 5,387 points, while the broader All Ordinaries index was down 22.2 points, or 0.41 per cent, to 5,366.4 points.
US stocks fell on the final day of 2014, cutting into the year’s gains as the Dow rose for the sixth year in a row. Base metals recorded declines, with Comex gold futures price down by US$16.30 an ounce or 1.4 per cent to US$1,184.10 per ounce. Iron ore was unchanged at $US71.20 a tonne.
CMC Markets chief market strategist Michael McCarthy said he expected low volumes of trade, and that the energy and materials sectors were likely to be under pressure due to falling commodities prices.
“A key factor in today’s trading is likely to be commodities stocks. Significant falls in oil prices could see the energy sector under pressure at the open, and weakness in some of the industrial commodities and no bounce back for precious metals means we might also see pressure on the materials sector,” he said.
Energy stocks began the day in negative territory, losing 0.91 per cent as a sector, with Woodside Petroleum giving up 0.76 per cent to $37.72 and Santos declining 0.85 per cent to $8.18. Origin Energy retreated by 1.11 per cent to $11.54. Beach Energy lost 2.39 per cent to $1.02.
Materials were also weaker by 0.63 per cent. BHP Billiton lost 1.19 per cent to $29.02 while Rio Tinto dipped 0.26 per cent to $57.85. Fortestcue lost 1.09 per cent to $2.71.
Healthcare stocks performed strongly in the lead up to the end of 2014, but Mr McCarthy said that trend could be reversed in trading today. They lifted slightly by 0.11 per cent. Ramsay Health Care shaved off 0.12 per cent to $57.03, although Sonic Healthcare gained 0.81 per cent. Cochlear lost 0.31 per cent to $77.46.
“What will determine the direction of the market today is the financials, with almost 50 per cent of the value of the index. And they haven’t been strong performers over the past few weeks — there doesn’t seem to be any huge incentives for investors to jump in today,” Mr McCarthy said.
Financials lost 0.49 per cent, with ANZ falling 0.53 per cent to $31.92 and CBA retreating 0.49 per cent to $85.23. NAB lost 0.98 per cent to $33.27 while Westpac shed 0.69 per cent to $32.93.
Consumer staples also started the day in the red, giving up 0.24 per cent. Woolworths lost 0.46 per cent to $30.54 and Wesfarmers inched down 0.12 per cent to $41.67.
Telstra lost 0.34 per cent to $5.95.
Utilities were a bright spot, gaining 0.44 per cent. AGL lifted 0.22 per cent to $13.39, APA Group rose 0.94 per cent to $7.52 and Duet Group increased its share price by 0,21 per cent to $2.42.
“On balance, we’re expecting a low-volume day where we could see a bit of bias to the downside,” Mr McCarthy added.
In local economic news, monthly house prices are due for release.
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