The Australian market has closed slightly lower despite commodity stocks staging a comeback.
IG Markets chief market strategist Chris Weston said commodity stocks traded well on Friday after recent losses due to speculation that China would increase its resource demand and positive economic data from the US.
“The commodity trade came back with a vengeance today, and whether this is a one-day affair or the start of something more compelling, we have seen traders taking shorts off the table, and many putting on new longs,” he said.
“Talk that China is back in the market as the end-buyer seems to be the supporting factor; while a fall in US jobless claims would not have hurt either.”
The mining giants mainly closed higher.
BHP Billiton jumped 88 cents to $32.58 and Rio Tinto surged $1.12 to $55.80 but Fortescue Metals dropped four cents to $3.57.
The four major banks mostly closed lower but Mr Weston said he expected them to take centre stage next week when ANZ and Westpac posted their half year results.
Commonwealth Bank tumbled 86 cents to $70.84, National Australia Bank fell 13 cents to $32.63 and ANZ dropped two cents to $29.88.
However, Westpac gained seven cents to $32.57.
GrainCorp shares lifted 94 cents, or 7.92 per cent, to $12.81 after the major grains marketer announced it was set for a foreign takeover.
The company said had reached conditional agreement to sell to US-based global foods business Archer Daniels Midland Company (ADM) all the shares that ADM does not already own in GrainCorp at $13.20 per share.
Sleep disorder equipment supplier ResMed dropped four cents to $4.46 despite posting record quarterly revenue.
KEY FACTS
* On Friday, the benchmark S&P/ASX200 index was down 4.9 points, or 0.1 per cent, at 5,097.5 points.
* The broader All Ordinaries index was down 1.5 points, or 0.03 per cent, at 5,082.7 points.
* At 1632 AEST, the June share price index futures contract was down eight points at 5,107 points, with 23,675 contracts traded.
* The price of gold in Sydney was $US1,474.30 per fine ounce, up $US46.84 on Wednesday’s closing price of $US1,427.46.
* National turnover was 1.408 billion securities worth $3.77 billion.