ASX rebounds from silver fall

File photo / NZ Herald

The Australian share market clawed back early losses from a plunge in silver futures and a new high for the strong local currency to close flat after Osama bin Laden's death was announced.

The benchmark S&P/ASX200 index was up 2.1 points, or 0.04 per cent, at 4825.3 points while the broader All Ordinaries index was down 2.8 points, or 0.06 per cent, at 4896.2 points.

The Australian dollar fetched US109.45c at the end of the day after hitting US110.20c - its highest level since the currency was floated in December 1983 - yesterday morning, as the greenback continued to slide against most major currencies.

The news on bin Laden sent the Dow Jones futures about 90 points higher, pointing to a buoyant start to US trade overnight, and weakened oil prices on expectations the al-Qaeda leader's death would increase geopolitical stability.

Weakness in the domestic sharemarket yesterday driven by volatility in the silver market, with futures prices for the metal falling about 12 per cent in early Asian trading.

Silver explorer Alcyone Resources dropped 1.5c, or 12 per cent, at 11c. Gold miner Newcrest was down 29c at A$41.16. BHP Billiton was 32c stronger at A$46.15, while Rio Tinto was up 51c at A$82.72.

In the energy sector, Woodside was down 47c at A$46.33, Origin was off seven cents at A$16.28 and Oil Search had inched 1c higher to A$7.06.

Among the main banks, Westpac was down 6c to A$24.78, ANZ was up 7c at A$24.30, National Australia Bank put on 19c to A$27.27 and Commonwealth Bank added 4c to A$53.75.

- AAP