MARKET TALK: S&P/ASX 200 Turns Down As Shanghai Falls

5th Jul 2010 03:21

0221 GMT [Dow Jones] S&P/ASX 200 down 0.2% at 4232.3, hits intraday low of 4231.3 after fading from 4260.1 intraday peak amid weakness in China equities, with Shanghai Composite down 1.7% in early trading. Banks have mostly turned negative, with NAB (NAB.AU) down 1.3%, while resources remain positive, with BHP (BHP.AU) up 0.3%, Rio (RIO.AU) up 0.6% on the back of M&A activity which boosted the coal sector in particular. Traders point to Bank of China's 1.3% fall in Hong Kong, after rights issue as potential negative factor for Asian shares. On a positive note, Centennial Coal (CEY.AU) up 32% after recommending A$2.5 billion bid from Thailand's Banpu (BANPU.TH), while Whitehaven (WHC.AU) up 5.8%, MacArthur (MCC.AU) up 4.8%. CSR (CSR.AU) up 3.2% after agreeing to sell Sucrogen business to Singapore's Wilmar International (F34.SG) for A$1.75 billion. But while recognizing that the mining tax agreement last week improved foreign investment prospects in mining and energy sector, traders doubt that the market can hold up in the face of perceived global economic deterioration. Index might now test support from last week's low at 4214.7. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 04, 2010 22:21 ET (02:21 GMT)