The share market remained range-bound for a fifth session as regional markets again ignored solid overnight leads from the US and Europe.
At lunchtime the ASX 200 was trading 11 points or 0.2% ahead at 5649, within the narrow trading range that has developed since a two-week rally crested on August 21. Gold stocks were the best of the sectors, rising 1.8%. The metals & mining sector advanced 0.8% as iron ore miners picked up buying interest as bargain-hunters speculated that the price of ore was near a bottom after touching a two-year low yesterday.
Telstra was the biggest drag on the market, pulling the telecoms sector down 3.2% as it traded without its dividend. Energy and consumer discretionary, were also weak, both losing 0.3%.
Asian markets marked time this morning. China's Shanghai Composite was the best of the bunch, rising 0.35%, ahead of Hong Kong's Hang Seng +0.1% and Japan's Nikkei +0.03%. Dow futures were recently up 10 points or less than 0.1%.
Building activity contracted last quarter, according to the Australian Bureau of Statistics. The value of construction work declined by 1.1% as a pick-up in residential work failed to offset a decline in engineering works.
Crude oil futures added seven cents this morning at US$93.88 a barrel. Spot gold was $1.60 firmer at US$1,284.10 an ounce. The dollar was buying 93.18 US cents.
The market has been consolidating for several days now, and the fact it has held its ground near a six-year high has to be bullish. If I was an index trader I would be a buyer, with a tight stop-loss just below the current range. (For the record, my attempts at index trading years ago were unprofitable - made me realise how much I rely on reading the buy/sell depth for timing entries and exits. Without that, I was lost.) Congratulations to PSY traders. I was hoping for a deeper retrace and missed the boat. FAR gave a good demonstration of why it pays to be cautious about substantial gap opens. MYG was tradeable but also a reminder that shares that run the day before announcements often struggle to hold their highs because those who got set early are waiting to sell. I began buying KEY too early in the dive, but timed the exit well for a tidy profit. Underwater on PBG and waiting.
