Australia shares slip, banks weak, uncertainty over RBA

Wed Dec 5, 2012 7:34pm EST

(Adds details, comments)
    Sydney, Dec 6 (Reuters) - Australian shares slipped 0.1
percent in morning trade, pulled down by shares in the banking
sector after investors fretted over whether Australia's central
bank has done enough to help the domestic economy.
    The Reserve Bank of Australia cut its main cash rate to 3.0
percent at its monthly policy meeting on Tuesday, equalling the 
low hit during the global financial crisis. 
    Banks all fell, with the Commonwealth Bank of Australia
 leading losses, dropping 1 percent.
    The benchmark S&P/ASX 200 index slipped 4.8 points
to 4,515.6 at 0022 GMT. The benchmark rose 0.4 percent on
Wednesday.
    "I think people are starting to come to the view that the
world economy is not going to be very supportive of Australia,"
said Damien Boey, equity strategist at Credit Suisse.
    The U.S. still faces uncertainty over the fiscal cliff while
Europe is still grappling with its sovereign debt crisis.
    "[They're also thinking] the RBA hasn't really done enough
because they haven't got a meeting in January, leaving whatever
easing they're going to do very very late."
    Defensives were soft, with supermarket chain Woolworths
 down 1.3 percent while telecommunications giant Telstra
 lost 0.7 percent.
    Losses however, were pared by optimism for miners after
Chinese Communist Party chief Xi Jinping said the country will
craft economic policies next year to ensure stable economic
growth.
    Addressing a politburo meeting, Xi said the government aimed
to stabilise exports as the world's second-largest economy faced
both favourable factors and challenges next year. 
    Bellwether miners BHP Billiton Ltd and Rio Tinto
Ltd were up 1 percent and 1.2 percent respectively.
    New Zealand's benchmark NZX 50 index slipped 2.7
points to 4,004.5.
    
    
    STOCKS ON THE MOVE
    * TV broadcaster Ten Network Holdings is on a
trading halt. The network said it would raise about A$230
million through an entitlement offer at A$0.20 a share, a 38
percent discount to its last trade. It said it was looking to
cut costs following a poor performance as it struggles in a weak
advertising market.
    
    (0022 GMT)
    
    
    
    

 (Reporting by Thuy Ong; Editing by Eric Meijer)
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