ASX market down early afternoon: Recovering from 1% fall at the open

About Latest Posts Mike KingMike King is a Investment Analyst and Writer. He caught the investing bug more than …

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After falling by over 1% at the open, the benchmark S&P/ASX200 index is recovering to be down just 0.6%, following a weak lead from Wall Street overnight, where the Dow Jones Index was down 0.4%.

The big miners weigh heavily on the index, with Newcrest Mining (ASX: NCM) falling 2.7% to $32.60.

BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are currently down 1% and 1.4% respectively after Moody's Investor Services released a report stating lower iron ore prices were likely, driven down by a forecast increase in the production of iron ore and higher Chinese scrap steel supply.

Around 260 million tons of additional iron ore capacity is expected to come on-line over the next two years, according to Moody's. This also doesn't bode well for Fortescue Metals Group Limited (ASX: FMG), as well as other Australian small iron ore producers.

The miners were also likely down due to proposed changes to federal laws surrounding corruption and bribery putting up to $50 billion in Australian investments in Africa at risk.

Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corporation (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) were all down slightly.

Other notable companies declining were Platinum Asset Management Limited (ASX: PTM), down 3.4%, Sonic Healthcare (ASX: SHL) down 4% and Insurance Australia Group Limited (ASX: IAG) also down 4.2%.


Telstra Limited (ASX: TLS), Wesfarmers (ASX:WES) and Woolworths Limited (ASX: WOW) were all up, Woolworths on the back on its first half FY2012 results that came in above consensus forecasts.

The biggest mover in the S&P/ASX 200 is QBE Insurance Limited (ASX: QBE), up 3.9% to $12.10. This is probably on the back of results from other insurers, showing that QBE was not alone in suffering a terrible year in 2011.

Other notable risers include David Jones Limited (ASX: DJS) up 2.6%, and Cabcharge Australia Limited (ASX: CAB) up 2.3% to $5.80, continuing its rise from just under $4.00 (back in September 2011).

The market's down today, but it's important to remember that what happens to the market on a day-to-day basis doesn't matter nearly as much as how our stocks perform over the long run.

If you're interested in the one ASX stock that our Investment Analyst  Dean Morel  picked to beat the market, check out our brand-new report "The Motley Fool's Top Stock for 2012." It highlights a small company paying a good dividend, and one that is set to benefit from the broadband revolution.  For a limited time, you can get instant access to the name of this company for free by clicking here.

More reading

Motley Fool contributor Mike King owns shares in Woolworths, QBE Insurance and Cabcharge. The Motley Fool's purpose is to educate, amuse and enrich investors. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Click here to be enlightened by The Motley Fool's disclosure policy.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »