Stocks slide to flat finish

The local bourse has pared early gains to close a smidgen north of flat, as global developments failed to shift sentiment.

The information boards at the Australian Securities Exchange (ASX) in Sydney (AAP Image/Craig Golding)

Local stocks closed steady as sentiment numbed toward offshore political developments and a fresh shot of North Korean aggression.

At the close, the S&P/ASX200 index was just 1.6 points higher on 5683.7, while the broader All Ordinaries closed up 1.1 points to 5741.7.

Traders wired into the open following the German and New Zealand elections over the weekend, however global markets registered a lacklustre reaction either way and the euro in particular showed only slight signs of weakness, according to CMC chief market strategist Michael McCarthy.

“The markets have quickly moved on and it appears those elections had little impact at all on trading today,” said Mr McCarthy, “nor did the sabre rattling that came out of the North Korean diplomat’s address to the UN when he said the US would be subject to a pre-emptive strike.”

CBA diverged from the rest of the big four banks to post a 1 per cent loss to $75.81, Westapc added 0.7 per cent to $31.86, ANZ edged up 0.2 per cent to $30.00, while NAB shares closed flat on $31.28 in the first session since the majors announced a sweeping overhaul of customer ATM fees.

Diversified mining heavyweights lofted above a sharp 3 per cent fall in the nation’s largest export iron ore. BHP rose 0.1 per cent to $25.98, Rio Tinto also added 0.1 per cent to $66.01, while in energy Woodside Petroleum shed 0.2 per cent to $29.14.

Bulk commodity prices, including that of iron ore, traded near a two-month low, according to ANZ senior economist Joanne Masters.

“Last Wednesday’s S&P sovereign China downgrade is still driving sentiment,” said Ms. Masters, “there is generalised concern about steel capacity being cut over the Chinese winter to reduce pollution.”

Shares in retail operator and portfolio manager Premier Investments fell 2.6 per cent to $13.40 after it lifted full-year profit and sweetened its dividend, while chair Solly Lew took aim at management of the group’s new investment Myer.

Murray Goulburn closed 6.32 per cent higher at $0.925 after New Zealand dairy giant Fonterra confirmed it had made a bid for the company.

Propertylink shares closed 0.6 per cent higher at $0.90 after it announced it had rejected a takeover bid from rival Centuria, describing it as “undervalued” and one that would pose a risk to shareholder value.

Equity components of the bid, Centuria Capital shares ended the session up 2.3 per cent at $1.36, while Centuria Property Funds closed were down 1.6 per cent at $2.51.

In economics news, Citi raised its GDP growth forecast 40 basis points to 2.5 per cent for calendar year 2017.

Citi economists eyed a pick up in the non-mining segment of the economy, however they struggled to glean signs of a uniform pick up amid ongoing sluggish consumer spending.

“The growth outlook for Australia is improving but we don’t think by enough to trigger RBA action until late next year,” Citi’s analysts said.

The Australian dollar traded mixed against its US counterpart and remained 0.1 per cent, or US0.06 cents lower in late trade at US79.61 cents.