World Market Overview 14/03/2011
Australian markets
The Australian share market has suffered its worst weekly fall in just over nine months, losing ground on Friday as sentiment was further eroded by economic concerns in Europe and the United States. The benchmark S&P/ASX200 index was down 54.9 points, or 1.17 per cent, at 4,644.8 points, while the broader All Ordinaries index was down 56.5 points, or 1.18 per cent, at 4,734.8 points. Both indices lost 4.5 per cent for the week, their largest losses since late May.
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The market has closed lower in seven out of its last 10 sessions. Losses on Friday were widespread, with the heaviest falls in the heavyweight resources and financials sectors. BHP Billiton dropped 44 cents to $44.19, Rio Tinto lost $1.62 to $78.80 and Fortescue Metals shed 16 cents to $5.88. The spot price of gold in Sydney was $1,411.90 per ounce, down $18.46 from $1,430.36 on Thursday.
Among the banks, Westpac lost 29 cents to $22.90, Commonwealth shed 44 cents to $50.86, ANZ dropped 43 cents to $23.17 and NAB was 17 cents lower at $24.74. Insurers were among the market's better performers, with Suncorp up two cents to $8.19, IAG was steady at $3.47 and QBE lost nine cents to $17.17. Construction giant Leighton Holdings was the worst performing stock in the ASX100 after going ex-dividend, down $1.23 to $28.85, while Ramsay Health Care was the best, up 29 cents to $18.46. Telstra also lost ground, down four cents to $2.64. Preliminary national turnover was $3.4 billion securities worth $6.4 billion, with 303 stocks up, 926 down and 340 unchanged.
The Australian dollar was weaker late Friday, pushed lower by stronger than expected Chinese inflation which traders bet will spark further policy tightening. Analysts generally are looking for renewed selling of the Australian dollar as commodities prices begin to show signs of weakening. An expected end to the Federal Reserve's program of quantitative easing in coming months will also boost the U.S. dollar. The Australian dollar was changing hands at $1.0028, down from $1.0053 late Thursday.
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