CAPITAL MARKETS

Market fades

AUSTRALIAN stocks had a strong start to the day, boosted by strong offshore leads, but gradually ...

Kristie Batten

The International Monetary Fund’s plans to boost lending sent global markets higher overnight but the local market underperformed, particularly compared to stocks in the region.

Hong Kong’s Hang Seng and Tokyo’s Nikkei 225 were both more than 1.1% higher at the close of the Australian market.

“There’s still a lot of news we’ve got to overcome, in particular out of China,” Colonial First State Global Asset Management senior investment analyst Belinda Allen told Bloomberg from Sydney.

“We still need to see signs of any policy easing coming out of China, and I think that would lead to a more upbeat outlook.”

The benchmark S&P/ASX 200 index reached an intraday high of 4258.39 points minutes after opening but quickly dropped off.

In the dying moments of the session the index still looked like it would end at least a few points higher but slipped 0.07% or 3.08 points to close on 4214.8 points.

Basic materials, which includes minerals, was again the best performing sector, gaining 0.7%, but heavy losses among telecommunications and some financial stocks weighed down the market.

BHP Billiton gained 0.9% or A34c to $37.34, while Rio Tinto added 0.2% or 15c to $66.75.

Lynas Corporation jumped 8.5% or 9c to $1.15.

Paladin Energy gained 5.9% or 10c to $1.795 while Independence Group added 5.8% or 22c to $3.97.

In other market news, Rift Valley Resources and BrightStar Resources entered trading halts pending significant transactions.

Blackfire Minerals requested a halt pending an announcement in relation to its Kangeshi copper project, while Resource and Investment and Blackham Resources entered halts over capital raisings.

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