Australian stocks fell yesterday despite the US Senate approving a US$700 billion financial rescue bill.
Despite the United States Senate passing a US$700 billion rescue plan yesterday, Australia's All Ordinaries Index declined due to weak performance in resources stocks.
The index fell 40.4 points or 0.8 per cent to 4774 points, after rising and falling seven times during the day.
Mining giant BHP Billiton fell 3.30 per cent to $31.67, while rival Rio Tinto slumped nearly 4 per cent to $91.25.
Despite the 35 per cent plus decline in resource stocks since their May records, Rio Tinto chief executive Tom Albanese expected Chinese demand would keep metals prices high in 2009, he said in Melbourne yesterday.
Commonwealth Bank of Australia gained 54 cents or 1.20 per cent to $45.40, after announcing it had not made an offer to buy BankWest.
Westpac Bank added 1.12 per cent to $23.51, ANZ Banking Group fell 1.66 per cent or $18.98 and National Australia Bank (NAB) was unchanged at $25.70.
NAB's recent rally from $18.90 has vaulted its market value to $44.14 billion, meaning the lender has taken the mantle of Australia's second-most valuable bank away from Westpac, worth $44 billion.
AMP Capital chief economist Shane Oliver said investors were still nervous about global growth, and whether the rescue package will pass its final passage in the US House of Representatives.
Aberdeen Asset Management investment manager of equities Natalie Tam expected the All Ordinaries to be slightly higher in the next six months, but then trade flat for a year.
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