Add Category
The Australian sharemarket has ended slightly down on a day where better-than-expected GDP results and improvements in the big banks were offset by broad-based selling in other sectors.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was down 7.8 points, or 0.15 per cent, at 5258.3, while the broader All Ordinaries index lost 7.9 points, or 0.15 per cent, to 5304.7.
IG market analyst Angus Nicholson said the big four banks “prevented a far worse performance†for the benchmark.
“Most sectors were down on the day with industrials and healthcare seeing the worst losses,†he said.
“Nonetheless, investors are happy to pick up yield again today with Telstra and the ‘big four’ all comfortably in positive territory on the day.â€
Materials dipped in line with the benchmark while consumer discretionary stocks were hit hard as concerns about Dick Smith’s prospects over Christmas spread to the retailer’s peers.
The benchmark had opened down following yesterday’s strong 1.9 per cent rally but enjoyed a brief bump — about 16 points — upon the release at 11.30am (AEDT) of better-than-expected economic growth data for the September quarter. The market then fluctuated throughout the afternoon.
The Australian dollar initially lifted on the GDP numbers before backing away from a six-week high reached in the morning, albeit remaining about half a cent higher than during its Tuesday’s session.
Elsewhere, Reserve Bank governor Glenn Stevens told a breakfast in Perth that Australia’s economy had managed to avoid any serious downturn and looked set for moderate growth in the coming period, but warned that “further adjustment†in the resources sector lay ahead.
Overnight, US markets rallied ahead of key economic data and amid prospects for additional stimulus from the European Central Bank while, on the commodities front, iron ore crashed to a new low of $US42.27 a tonne while other metals gained.
Industrials stocks led the declines — off 1.8 per cent.
Cleaning and hospitality group Spotless crashed 39.77 per cent to $1.325 after it issued a profit warning while infrastructure and environmental firm Cardno sunk 28.68 per cent to $1.70 after it completed the institutional phase of its capital raising.
Consumer discretionary stocks were 0.38 per cent down.
Harvey Norman was off 2.17 per cent to $4.06 while JB Hi-Fi drifted 5.01 per cent to $18. Dick Smith Holdings improved 18.57 per cent to 41.5c but remains sharply down from the 66c it closed at prior to Monday’s profit warning.
Consumer staples also dipped 0.38 per cent.
Woolworths fell 1.55 per cent to $24.11 after news broke that one of its Big W executives was leaving while Wesfarmers was up 0.38 per cent to $39.12. Metcash lost some of yesterday’s 13.51 per cent gains, dipping 7.14 per cent to $1.56.
Materials finished 0.22 per cent down.
BHP Billiton was unchanged at $18.75, as the miner flagged a cost-cutting drive in its copper business, while Rio Tinto dropped 0.77 per cent to $46.55.
Energy stocks were 0.39 per cent weaker.
Woodside was down 0.62 per cent to $30.62 while Santos was in a trading halt after announcing the retail component to its capital raising would have to be extended to address a shortfall.
Oil Search lifted 0.61 per cent to $8.28 while Origin Energy was down 0.88 per cent to $5.65.
Financial stocks were 0.25 per cent higher.
ANZ lifted 0.4 per cent to $27.90 while Commonwealth Bank rose 0.95 per cent to $81.76. Westpac was up 0.95 per cent to $33.10 while National Australia Bank ticked up 0.3 per cent to $30.
Meanwhile, Qantas lifted 0.81 per cent to $3.72 while Telstra rose 0.52 per cent to $5.52.
Looking ahead, US Federal Reserve Chair Janet Yellen speaks before the Economic Club of Washington overnight while tomorrow, at home, the Australian Bureau of Statistics releases trade data for October and the Federal Chamber of Automotive Industries has November figures for new vehicle sales. Also, AiGroup releases its performance of services index.