why is the market down , page-2

April 01, 2008
THE share market was lower at noon as investors sat on the sidelines due to concerns about losses related to credit markets and margin loans.

At 12noon (AEDT), the benchmark S&P/ASX200 index was down 22.4 points, or 0.42 per cent, at 5333.3, while the broader All Ordinaries fell 22.9 points to 5387.8.

On the Sydney Futures Exchange, the June share price index contract declined nine points to 5387 on 12,494 contracts.

Bell Potter senior advisor Stuart Smith said there was little interest in the market, with an unusually low trading volume.

"Investors are waiting for the next something, be it a Tricom or Opes, to come out of the woodwork. It's very much a wait and see game,'' Mr Smith said.

Tricom failed to settle some trades on time in January while Opes Prime collapsed last month after trading "irregularities'' were uncovered.

Banking shares declined, with National Australia Bank falling 73 cents, or 2.42 per cent, to $29.42, Commonwealth Bank shedding eleven cents to $41.70, ANZ losing 22 cents, or 0.98 per cent, to $22.33 and Westpac dropping 22 cents to $23.53. St George gained 14 cents to $25.85 after announcing that director John Curtis becomes the bank's chairman today.

"Some of the banks have results and guidance coming up, so people will be looking closely at that,'' Mr Smith said.

The supermarkets also fell, with Wesfarmers, which owns Coles and Bunnings Warehouse, losing 94 cents, or 2.35 per cent, to $39.05. Woolworths dropped 64 cents, or 2.21 per cent to $28.36.

Mr Smith said Wesfarmers had funding which would required roll over soon, and that was hurting their share price, while Woolworths, which would normally be a good defensive stock to buy at times of high volatility, had been dragged down by association.