Australian Stock Report Market Wrap Up: Local shares gave up most gains

4 MAY 2016 - SYDNEY: Australian shares gave up their gains from yesterday and closed lower pulled down by the big miners.

“Most of yesterday's stellar gains were reversed today as a risk-off international session and ho-hum budget failed to further inspire the bulls,” said Chris Conway, head of research at the Australian Stock Report.

According to Conway, BHP Billiton (BHP) had a big wipe-out after it was announced that Brazilian prosecutors are pursuing a $58 billion civil suit against the company's Samarco joint venture.

BHP recorded its worst single session loss in seven years, ending down nearly 10%. That, as well as weakness in Rio Tinto (RIO) - which fell nearly 8% itself - saw the materials sector slump almost 6%.

Energy plays were bashed almost as badly, with the sector tumbling 5%. Woodside (WPL) slipped more than 5%, whilst Santos (STO) was murdered, down close to 9%.

Significant weakness was also seen in consumer staples, with Woolworths (WOW) diving 7%.

Amongst the few bright spots were healthcare plays, property trusts and utilities, but ultimately there wasn't a lot worth cheering.

On the day the ASX 200 lost 82 points (-1.5%) to settle at 5271.

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Australian Stock Report

http://www.australianstockreport.com.au/