Euro fears weigh on Aussie stocks

File photo / Paul Estcourt

SYDNEY - The Australian share market closed steady yesterday after regaining early losses as investors bought into stocks weakened by concerns about European sovereign debt and tensions on the Korean peninsula.

The benchmark S&P/ASX200 index lost 4.4 points, or 0.1 per cent, to 4584.7, after an earlier low around 4551.

The broader All Ordinaries index lost 3.7 points, or 0.08 per cent, to 4673.2 points, well off its low of 4638.

On the ASX24, the December share price index futures contract was 10 points lower at 4595 points, with 36,113 contracts traded.

The market opened lower on negative sentiment from offshore markets, with the artillery exchange between North and South Korea adding to risk-averse attitudes.

As local trading continued most stocks, with the exception of the big miners, rebounded.

"It really feels like the market is looking beyond the concerns of the moment, which we have faced before, and viewing today as an opportunity to finally put cash that has been sitting on the sidelines to work," CMC Markets institutional equities dealer David Barrett-Lennard said.

The day's best performer was Telstra, adding to Tuesday's gains with a rise of A4c, or 1.46 per cent, to A$2.78.

That came as the federal Government's legislation paving the way for the telco to participate in the NBN won the support of Independent senator Nick Xenophon.

BHP Billiton lost A19c to A$42.95 and Rio Tinto shed A$1.04 to A$82.49. Fortescue Metals gained A5c to A$6.45. Newcrest Mining added A26c to A$39.67 as the gold price rose due to uncertainty in global markets.

The spot price of gold in Sydney was US$1375 per ounce, up US$15.64 from Tuesday's close of US$1359.36.

Westpac was the best of the banks, adding A9c to A$21.40 after opening lower. The other banks improved then closed lower, with Commonwealth losing A3c at A$48.15, ANZ Banking Group dropping A6c to A$22.28 and National Australia Bank A11c lower at A$23.45.

"Sentiment is a funny thing ... [this] may in fact be signalling the start of a new upwards leg," IG Markets strategist Ben Potter said.

- AAP