Hunters scavenge before ASX rally
AUSTRALIA’S sharemarket performed a backflip yesterday after Chinese equities rallied.
OptionsXPress analyst Ben LeBrun said Chinese Government funds had probably propped up the Shanghai market.
The Shanghai Composite ended 0.2 per cent lower after tumbling 4.4 points in morning trade. The ASX 200 had a similar turnaround, adding 5 points to close at 5101.5 points, up from its intraday low of 5015.
“The momentum appears to have swung and the bargain hunters picked up some stocks close to 5000 points,” Mr LeBrun said.
He said US markets were in correction territory, which added an element of uncertainty to the global picture. On the Australian bourse, the big four banks ended higher.
National Australia Bank rose 30¢ to $30.70, Westpac 22¢ to $30.42, ANZ 35¢ to $27.42 and Commonwealth Bank 33¢ to $73.63. But energy stocks were lower following weak oil prices, with Woodside Petroleum down 52¢ to $31.10 and Santos off 4¢ to $4.75.
Kathmandu shares fell 4.5¢ to $1.50 after takeover suitor, kiwi retailer Briscoe, said it would not lift its bid.
“Briscoe Group considers that its offer price is attractive, and sees no reason to increase it,” Briscoe said. The New Zealand homewares and sporting goods retailer owns a 20 per cent stake in the chain.