LINGERING anxiety coupled with softer commodity prices weighed on the big miners as the fallout from China continued to flow through the Australian bourse, sparking a wave of profit-taking and prompting analysts to forecast that volatility would dominate trading over the next few weeks.
With offshore leads bearish, resource equities appeared to have no other choice but to stay in negative territory as investors took the risk off the table.
ABN Amro Morgans private client advisor Craig Walker told Final Call that weaker commodity prices on the London Metal Exchange, combined with the overall anxiety in the market, resulted in most stocks hanging out in negative territory.
"Zinc prices were hit particularly hard … that combined with broader indecision about the market at this point in time has brought about the sell-off," Walker said.
"This correction could last a little while yet … could potentially last for another two or three weeks."
URANIUM equities were again the hardest hit in today’s session, with some companies sustaining some of the larger falls out of resource stocks. Dow Jones Newswires said the sudden downturn is not surprising considering the sector’s gains over the past year far exceeded fundamentals, so when sentiment heads south, uranium equities fall sharply.
AGS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
