Resources take the shine off overseas leads
Official figures released on Wednesday showed that Australia's trade deficit had narrowed to $178 million in February, coming in under economists' forecasts of $1 billion.
But new home sales tumbled 5.3 per cent in February, snapping a four-month run of increases.
Lonsec senior client adviser Michael Heffernan said the Australian market had ignored positive leads from US and European markets, but there was no particular factor dragging down the local sharemarket.
"You can't attribute it [the fall] to what's been going on offshore, so it looks like there's something that's domestically impacting the market," he said.
"But there's nothing particularly obvious. Perhaps it's the overhang from the Reserve Bank not cutting interest rates yesterday [Tuesday]."
Mr Heffernan said the resources sector had performed poorly, pulled back by lower commodity prices.
In the resources sector, global miner BHP Billiton fell 49¢ to $32.23 and Rio Tinto reversed $1.12 to $55.38.
Oil and gas producer Woodside Petroleum was off 23¢ at $35.77.
West Australian Premier Colin Barnett said any delays by Woodside and its partners on a final investment decision on the $40 billion Browse gas project could set the project back many years.
Coal seam gas miner Metgasco dipped 0.6¢ to a record low at 6¢ after it said it had been asked to consider gas projects outside NSW.
Among the major banks, ANZ backtracked 55¢ to $28.27 after it announced its head of international and institutional banking Alex Thursby resigned to take up a new job in the Middle East.
NAB jumped 16¢ to $31.11, Westpac climbed 13¢ to $31.15 and Commonwealth Bank sagged 50¢ to $68.45.
At the close on Wednesday, the benchmark S&P/ASX200 Index was down 27.8 points, or 0.56 per cent, at 4957.7 points.
The broader All Ordinaries Index was down 29.1 points, or 0.58 per cent, at 4966.4 points.
The price of gold in Sydney closed at $US1567.85 per fine ounce, down $US33.81 from $US1601.66 on Tuesday.
AAP
Frequently Asked Questions about this Article…
The sharemarket closed about 0.6% lower amid mixed economic data and softer commodity prices. While Australia’s trade deficit narrowed more than expected, new home sales fell 5.3% in February and the resources sector weakened, contributing to the overall pullback.
Official figures showed the trade deficit narrowed to $178 million in February (better than the $1 billion forecast), but new home sales tumbled 5.3%, ending a four-month run of gains. That mix of data helped create uncertainty for investors and weighed on local market sentiment.
Resources stocks underperformed as commodity prices eased. BHP Billiton fell 49¢ to $32.23, Rio Tinto gave back $1.12 to $55.38, and Woodside Petroleum was down 23¢ at $35.77—reflecting the sector’s weakness on the day.
West Australian Premier Colin Barnett warned that any delays by Woodside and its partners on a final investment decision for the $40 billion Browse gas project could set the development back many years, according to the article.
Metgasco dipped 0.6¢ to a record low of 6¢ after saying it had been asked to consider gas projects outside New South Wales, a development that weighed on its share price.
Bank stocks were mixed: ANZ fell 55¢ to $28.27 after its head of international and institutional banking, Alex Thursby, resigned to take a role in the Middle East. NAB rose 16¢ to $31.11, Westpac climbed 13¢ to $31.15, and Commonwealth Bank eased 50¢ to $68.45.
The S&P/ASX200 closed down 27.8 points (−0.56%) at 4,957.7, while the All Ordinaries fell 29.1 points (−0.58%) to 4,966.4—a modest single-day decline driven by the mixed domestic data and soft resource stocks.
Yes. The price of gold in Sydney closed at US$1,567.85 per fine ounce, down US$33.81 from US$1,601.66 on Tuesday, reflecting broader commodity weakness noted in the article.
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