KEY POINTS:
PERTH - The Australian share market closed marginally weaker after a larger than expect interest rate cut by the central bank boosted the bourse back from earlier sharply lower levels.
The benchmark S&P/ASX200 index was down 6.4 points, or 0.15 per cent, at 4,215.1, while the broader All
Ordinaries index had shed 3.2 points, or 0.08 per cent, to 4,169.8.
On the Sydney Futures Exchange at 1620 AEDT, the December share price index futures contract was 43 points higher at 4,219 on a volume of 27,255 contracts.
DJ Carmichael research assistant Peter Kopetz said the Reserve Bank of Australia's (RBA) 75 basis point cut was surprising, surpassing most analysts' expectations of a 25 to 50 basis point cut.
"It suggests the RBA is worried about the health of the Australian economy," Mr Kopetz said.
"Hopefully, it will be for the better in the long run for the Australian economy," he said.
Mortgagors will be happy but for companies like BHP and Rio, it suggests there are problems with China, with everything else, and I'd be looking at it quite conservatively and be a little bit worried for the next six months, he said.
"There are speed bumps ahead."
Mr Kopetz said the key indices' roughly 40 point jump was a "keen jerk reaction", with the market desperately seeking "a catalyst to move it forward".
He said a Democratic win in the US tomorrow would be a positive and there was a strong possibility the local market "may have reached its bottom last week at about 3,600 points".
"But things could change in an instant."
BHP Billiton was down 78 cents, or 2.61 per cent, to $29.12, while fellow mining giant Rio Tinto had fallen $2.29, or 2.79 per cent, to $79.71.
Stock Move Price AMP +0.010 5.980 ANZ Bank +0.300 18.800 BHPBilton -0.780 29.120 CBA -0.040 41.800 NAB +0.420 25.520 NewsCorp
-0.400 15.950 Polartech - .088 Rio Tinto -2.290 79.710 TelstraCp -0.050 4.150 WestpacBk +0.830 22.300 Woolwrths -0.530 29.100
MORE rlm/ atalyst to move it forward". He said a Democratic win in the US tomorrow would be a positive and there was a strong possibility the local market "may have reached its bottom last week at about 3,600 points". "But things could change in an instant." BHP Billiton was down 78 cents, or 2.61 per cent, to $29.12, while fellow mining giant Rio Tinto had fallen $2.29, or 2.79 per cent,
to $79.71.
The major banks were mixed. ANZ rose 30 cents, or 1.62 per cent, to $18.80, Commonwealth Bank inched four cents lower to $41.80 and National Australia Bank was up 42 cents, or 1.67 per cent, to $25.52.
Takeover target St George Bank put on 83 cents, or 2.85 per cent, to $29.93 while suitor Westpac also gained 83 cents, or 3.87 per cent, to $22.30.
At 1625 AEDT, spot gold was trading in Sydney at US$722.15 an ounce, down US$12.15 on Monday's close of US$734.30.
Gold stocks were mixed. Newcrest was down 59 cents, or 2.78 per cent, to $20.65, Newmont added 10 cents, or 2.56 per cent, to $4.00 and Lihir Gold gained seven cents to $2.07.
Energy stocks were also mixed. Woodside Petroleum jumped $1.56, or 3.68 per cent, to $43.97, Oil Search fell 11 cents, or 2.37 per cent, to $4.54 and Santos appreciated 15 cents, or 1.07 per cent, to $14.13.
In the news today, building products supplier James Hardie Industries said it would suspend production at two of its plants in the United States due to the downturn in the local housing industry.
Its shares were up 17 cents, or 3.53 per cent, to $4.99.
Babcock & Brown Infrastructure Group has sold 50 per cent of its stake in the New Zealand operations of its Powerco subsidiary to Australian investment manager Queensland Investment Corporation.
Its shares gained four cents, or 18.6 per cent, to 25.5 cents.
Consumer products supplier and printer McPherson's today announced a renouncable rights offer to raise up to $21.5 million to strengthen the company's balance sheet and to fund general working capital.
Shares in McPherson's plunged $1.20, or 53.81 per cent, to $1.03.
Among the retailers, supermarket chain Woolworths shed 53 cents to $29.10, Coles and Bunnings owner Wesfarmers was down $1.04, or 4.27 per cent, to $22.31 and upmarket department store group David Jones added five cents to $3.40.
Electrical goods specialist Harvey Norman soared 29 cents, or 10.74 per cent, to $2.99 despite today saying written sales at its franchised stores for the 28 days to November 2 fell 0.6 per cent compared to the corresponding period in 2007.
Among media stocks, Fairfax was down five cents to $1.95 while News Corp dipped 40 cents, or 2.45 per cent, to $15.95 and its non-voting scrip fell 22 cents, or 1.36 per cent, to $15.95.
The most traded stock by volume was satellite communications service provider Newsat Ltd, with 62.91 million units changing hands worth $126,321.
Its shares added 0.1 of a cent, or 50 per cent, to 0.3 of a cent.
Preliminary market turnover was 951.27 million shares, valued at $2.92 billion, with 493 stocks up, 390 down and 299 unchanged.
- AAP
