Shares head south, following offshore trends
At the close on Thursday, the benchmark S&P/ASX 200 Index was 44.2 points, or 0.89 per cent, down at 4913.5.
The broader All Ordinaries Index was 47.1 points, or 0.95 per cent, weaker at 4919.3.
RBS Morgans director of equities Bill Chatterton said the local market had followed US markets down after weak US economic data. Lower commodity prices, particularly gold, were also weighing on the local mining sector.
"The weakness is across the board," Mr Chatterton said.
"Mostly the falls have come from weak offshore leads but, locally, uncertainty surrounding superannuation is having an impact. Rightly or wrongly, it's probably creating negativity in the market."
The resources and financial sectors led the market lower, with global miner BHP Billiton 48¢ down at $31.75, while Rio Tinto lost 78¢ to $54.60. Fortescue Metals shed 12¢ to $3.55 while goldminer Newcrest was $1.01 lower at $18.49.
The big banks all fell. National Australia Bank 11¢ weaker at $31, Commonwealth Bank lost 35¢ to $68.10, Westpac dipped 36¢ to $30.79, and ANZ gave away 24¢ to $28.03.
Among other stocks, Fairfax Media shed 1¢ to 61¢ after announcing a reorganisation of its operations into five business arms.
Troubled retailer Billabong asked for an indefinite suspension of its shares, which last traded at 73¢, while it continued takeover talks with two potential suitors.
The price of gold in Sydney closed at $US1550.95 an ounce, down $US16.90 from $US1567.85 on Wednesday.
National turnover was 1.93 billion securities worth $4.56 billion.
The dollar was slightly lower following news of fresh stimulus measures in Japan. At 5pm on Thursday, it was at US104.41¢, down from US104.58¢ on Wednesday afternoon.
OzForex chief currency strategist Jim Vrondas said the dollar rose as high as US104.91¢ about noon after official figures showed a surge in retail spending.
He said the currency weakened after the Bank of Japan announced it would boost purchases of Japanese government bonds, while pledging to meet a 2 per cent inflation target.
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The market finished almost 1% lower mainly because of weaker offshore leads and falling commodity prices, especially gold. RBS Morgans director Bill Chatterton said weaker US economic data pulled local markets down, and local uncertainty around superannuation was also creating negativity.
At the close the S&P/ASX 200 was down 44.2 points (0.89%) at 4,913.5, and the All Ordinaries fell 47.1 points (0.95%) to 4,919.3.
The resources and financial sectors led the market lower. Major miners were down: BHP Billiton fell 48¢ to $31.75, Rio Tinto lost 78¢ to $54.60, Fortescue Metals slipped 12¢ to $3.55, and gold miner Newcrest was $1.01 lower at $18.49.
All the major banks fell: National Australia Bank was 11¢ weaker at $31.00, Commonwealth Bank lost 35¢ to $68.10, Westpac dipped 36¢ to $30.79, and ANZ gave away 24¢ to $28.03.
Gold in Sydney closed at US$1,550.95 an ounce, down US$16.90 from US$1,567.85 the previous day. The drop in gold prices weighed on the local mining sector, contributing to falls in gold-focused stocks like Newcrest.
Billabong requested an indefinite suspension of its shares — they last traded at 73¢ — while continuing takeover talks with two potential suitors. Fairfax Media shed 1¢ to 61¢ after announcing a reorganisation into five business arms.
The Australian dollar was slightly lower following fresh stimulus measures in Japan. At 5pm it was at US104.41¢ (down from US104.58¢). OzForex strategist Jim Vrondas noted the dollar rose to US104.91¢ midday after strong retail spending figures, then weakened after the Bank of Japan said it would boost JGB purchases and pursue a 2% inflation target.
National turnover was 1.93 billion securities worth $4.56 billion, reflecting broad market participation even as indices fell.
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