Slight downturn follows two days of gains
At the close, the benchmark S&P/ASX 200 Index was down 8.8 points, or 0.18 per cent, at 4968.
The broader All Ordinaries Index was down 6.5 points, or 0.13 per cent, at 4973.7.
The June share price index futures contract was five points lower at 4964.
CommSec market analyst Steve Daghlian said Wednesday's falls were modest. "Thanks to yesterday's big gain, we are still up 1.5 per cent for the week," he said.
The market has not posted gains for a week or finished up two days in a row for five weeks.
Mr Daghlian said reasonably solid trade figures showing strong import demand in China might have prevented stronger losses. But that was balanced by a new report showing a surprising drop in consumer confidence this month.
Defensive stocks such as Woolworths and Wesfarmers, and some big banks, fared poorly, being viewed as of less value than the miners.
Wesfarmers finished 37¢ lower at $40.12 and Woolworths was 36¢ weaker at $33.89.
Among the banks, Westpac was down 37¢ to $30.93, ANZ 23¢ to $28.25, Commonwealth Bank 66¢ to $67.30 and National Australia Bank 21¢ to $31.20.
But improved commodity prices attracted investors to resource stocks. BHP Billiton was more than 1 per cent higher for a third consecutive day, ending 57¢ stronger at $33.68. Rio Tinto surged $1.55, or 2.7 per cent, to $58.28.
The dollar reached its highest level in more than two months, helped by the Chinese trade data.
At 5pm on Wednesday, it was at US105.09¢, up from Tuesday's local close of US104.24¢. It reached an intra-day peak of US105.19¢ on Wednesday afternoon, its highest since late January.
Westpac chief currency strategist Robert Rennie said the dollar received a boost after Chinese trade figures showed a rise in exports in March. It was also benefiting from rising demand for Australian government bonds because of Japan's stimulus efforts.
The Bank of Japan will buy ¥7 trillion of Japanese government bonds a month in an effort to lift inflation after decades of economic stagnation.
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The sharemarket finished a touch lower after investors sold defensive and high‑yielding financial stocks following two days of gains. Modest falls were recorded even though recent gains left the market up about 1.5% for the week.
The benchmark S&P/ASX 200 closed down 8.8 points (‑0.18%) at 4,968, while the broader All Ordinaries fell 6.5 points (‑0.13%) to 4,973.7.
Defensive retailers Woolworths and Wesfarmers were weaker (Woolworths down 36¢ to $33.89; Wesfarmers down 37¢ to $40.12). Major banks also fell: Westpac down 37¢ to $30.93, ANZ down 23¢ to $28.25, Commonwealth Bank down 66¢ to $67.30 and National Australia Bank down 21¢ to $31.20.
Resource stocks attracted investors after improved commodity prices. BHP Billiton rose about 57¢ to $33.68 for a third consecutive positive day, while Rio Tinto surged $1.55 (2.7%) to $58.28.
Reasonably solid Chinese trade figures showing strong import demand helped limit losses, but that was balanced by a surprising drop in consumer confidence this month, which weighed on sentiment.
The Australian dollar strengthened to about US105.09¢ at 5pm (peaking intraday at US105.19¢), its highest since late January. Westpac's currency strategist said the rise followed Chinese trade data showing higher exports and growing demand for Australian government bonds amid Japan's stimulus.
June share price index futures were five points lower at 4,964, indicating a modest near‑term drag compared with the cash market close.
No — CommSec analyst Steve Daghlian noted the falls were modest and, thanks to the previous day's big gain, the market was still about 1.5% higher for the week despite not having posted a winning week recently.
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