The Australian share market has closed slightly lower as investors wait to see if the United States and China will take further measures to stimulate their economies.
On Monday, the benchmark S&P/ASX200 index dipped 5.3 points, or 0.12 per cent, to 4,343.7 points, while the broader All Ordinaries index eased 3.6 points, or 0.08 per cent, to 4,372.9 points.
On the ASX 24, the September share price index futures contract was five points higher at 4,337 points with 20,795 contracts traded.
OptionsXpress market analyst Ben Le Brun said the Australian market had had a disappointing day as investors appeared reluctant to break through the 4,400-point level on the main indices.
“We may just be treading water in front of the Jackson Hole meeting, and also looking at the PBOC (People’s Bank of China), wanting Premier Wen to follow through on some of his comments,” Mr Le Brun said.
Central bankers including US Federal Reserve chairman Ben Bernanke, and economists hold their annual symposium at Jackson Hole, Wyoming in the US later this week.
Market traders will be scrutinising Ben Bernanke’s speech on August 31 for any indications that the Fed Reserve will undertake further measures to stimulate the US economy.
Chinese Premier Wen Jiabao on the weekend called for efforts to stabilise weakening exports amid signs that China’s economy is losing strength despite stimulus efforts.
On the local share market on Monday, troubled surfwear retailer Billabong edged forward one cent to $1.355 after it said it would close stores and cut some product lines as it seeks to bounce back from a $275.6 million loss.
Oil refiner Caltex Australia shed 22 cents to $15.27 despite reporting a 74 per cent rise in first half profit due to better margins from the refinery operations it plans to partially close.
Transport and logistics group Toll Holdings reversed four cents to $4.51 as it said its priority in the current financial year would be to resolve problems in its business in Japan and its marine shipping operations in Asia.
Patties Foods, the maker of the Four’N Twenty meat pie, added 2.5 cents to $1.59 after it grew profits in 2011/12 even as shoppers cut back in tough trading conditions.
In the resources sector, Sundance Resources climbed 2.5 cents, or 7.46 per cent, to 36 cents after it accepted a reduced takeover offer from China’s Hanlong Mining.
Atlas Iron declined five cents to $1.605 after it said it expects the price of iron ore to increase over the next two months as China’s demand for steel remains strong.
The price of gold in Sydney was $US1,673.05 per fine ounce, up $US8.80 on Friday’s closing price of $US1,664.25.
National turnover was 1.5 billion securities worth $3.34 billion, with 448 stocks up, 449 down and 365 unchanged.
On Wall Street on Friday, the Dow Jones Industrial Average was up 100.51 points, or 0.77 per cent, at 13,157.51 points, boosted by new hints at stimulus from the Federal Reserve and more reports on the European Central Bank’s possible bond buying.
