Sharemarket off the canvas after choppy session

THE Australian share market pulled itself off the canvas and finished slightly higher yesterday after a choppy session of trading and despite ominous signs from Wall Street.

The benchmark ASX 200 index gained 1.1 points, or 0.02 per cent, to 5665.2 points, while the broader All Ordinaries gained 0.1 point to close flat at 5759.6.

The ASX 200 has lost 4.6 per cent this week in a rout which has stripped $82 billion from the value of the nation’s biggest listed companies.

It has also tipped the market into a correction — a drop of more than 10 per cent since its recent high in late August.

Bell Direct equities analyst Julia Lee said the ASX 200 was heading towards its worst month since the global financial crisis.

Futures trading indicated the US Nasdaq, which is dominated by tech stocks, was headed for another 1.7 per cent sell-off overnight Friday.

Ms Lee said the mayhem on Wall Street was hitting markets around the world.

“Given the type of moves that we’re seeing around the region, we’re just seeing contagion,” she said.

The financials and materials sectors pared back late losses to each close 0.4 per cent higaher.

ANZ had the least gains of the big four banks, up 0.4 per cent to $24.91 while the Commonwealth Bank recorded the strongest gain, up 0.8 per cent to $65.81.

Myer rose 1.1 per cent to 48c despite its biggest shareholder Solomon Lew launching a new campaign to deliver it a second strike on pay in a bid to topple the board.

Mining giant BHP Billiton rose 1.3 per cent to $31.20 while Rio Tinto put on 0.9 per cent to $74.16, helping lift the materials sector and broader market higher.

Energy stocks continued to be sold off with Origin Energy down 2 per cent to $6.95, Woodside Petroleum off 1 per cent to $33.26 and Oil Search losing 1.3 per cent to $7.77.

Blood products and vaccine maker CSL rose 1.3 per cent to $176.90. It started October above $200.