Aust shares down amid uncertainty
Australian shares are lower as uncertainty around overseas markets continues to trouble local investors.
US stocks closed lower for the sixth straight session overnight, while Shanghai plummeted more than seven per cent to continue its steepest four-day rout since 1996.
The domestic market fell by about one per cent soon after open on Wednesday, but staged a modest recovery within the half hour.
But it failed to build on momentum gained from Tuesday’s session, where the ASX posted a remarkable turnaround from the previous day’s $64 billion plunge.
“Volatility will remain in this market,” said Macquarie Private Wealth division director Lucinda Chan.
“It’s a very difficult time for investors given the amount of volatility we’ve seen in the last few days since the rout started in China from the devaluation of the currency.”
The resources sector was in positive territory, led by BHP Billiton, whose shares were up 38 cents to $23.72 after it increased its full year dividend despite a dive in net profit.
Rio Tinto gained 14 cents to $48.59 and Fortescue Metals rose half a cent to $1.82.
The big banks were a weak point for the ASX. NAB was down 23 cents to $30.86, Commonwealth Bank lost 21 cents to 74.87, ANZ fell 28 cents to $27.71 and Westpac was weaker 24 cents to $30.66.
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“Everyone is just sitting back to see how things stabilise,” Ms Chan said.
“The rout in the global markets is taking precedence over earnings season and economic data that’s come out.”
In company news, Westfield was down two cents to $9.50 after reporting a half year net profit of around $466 million.
Seven Group Holdings posted an almost $360 million loss, with shares up six cents to $4.72.
– AAP
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