Australian share prices closed flat at six month lows on Thursday, but investors dumped uranium stocks as fears grew over the threat of Japan's melting nuclear reactors.
The benchmark S&P/ASX200 index closed 2.9 points or 0.06 percent lower at 4,555.3, while the broader All Ordinaries index was 5.6 points down at 4638.4.
Worries over the fate of Japan's stricken nuclear reactors and weak US housing data sparked a dive on Wall Street Wednesday that sent the Australian market lower in early trade, but it recovered during the course of the day.
"Japan's nuclear crisis is clearly the main issue," said RBS head of sales Justin Gallagher. "But there's also the weak US housing data and concern about inflationary pressures in the US."
While most resources stocks rose on the hopes of rebuilding shattered regions of Japan, uranium shares plunged.
Paladin Energy, which had shone on Wednesday, was the worst performer, diving 9.5 percent to Aus$3.35 ($3.33).
Energy Resources of Australia, one of the largest uranium producers in the world through its Ranger Mine, providing some 10 percent of global primary uranium production, shed 6.15 percent to Aus$7.32.
Extract Resources lost 23.17 percent to Aus$6.50, while uranium explorer Mantra Resources Ltd dived 27.5 percent to Aus$4.85 after a Russian yellowcake miner withdrew a Aus$1.16 billion dollar takeover bid for the firm.
Uranium stocks had seen a strong a rebound on Wednesday after diving over the previous two days due to Japan's looming nuclear crisis.
No comments:
Post a Comment