The Australian share market has closed lower as investors struggle to maintain the confidence that marked the earlier months of this year.
OptionsXpress market analyst Ben Le Brun said that although mining stocks had performed better on the local bourse on Friday, the overall market had generated slim pickings.
“It does appear that we are in a downward trend,” Mr Le Brun said.
He said the share market in Japan had risen strongly on Friday, a day after Japan’s central bank announced aggressive action to pull the Japanese economy out of an extended slump.
But no other markets in the region had followed suit.
Mr Le Brun said the Australian market’s strong run upwards had not been commensurate with company earnings, and at some time company earnings would have to catch up, or share prices would have to come down to reflect reality.
“It seems that a month ago, investors were talking about the market as a glass half full, now they’re looking at it as a glass half empty,” Mr Le Brun said.
He said investors would focus next on an important US employment report to be released tonight: the US non-farm payrolls figures for March.
In the resources sector on the Australian market, global miner BHP Billiton was up 49 cents at $32.24 and Rio Tinto jumped $1.00 to $55.60.
Oil Search was nine cents lower at $7.25 after it said its LNG project in PNG remained on track to deliver its first gas sales next year, despite costs blowing out to $US19 billion ($A18.29 billion).
Among the major banks, Commonwealth Bank fell $1.17 to $66.93, as chief executive Ian Narev said he was hopeful of an improvement in business and consumer confidence this year.
Westpac slumped 54 cents to $30.25, ANZ slipped 28 cents to $27.75 and National Australia Bank dumped 43 cents at $30.57.
KEY FACTS
* On Friday, the benchmark S&P/ASX200 index fell 22.1 points, or 0.45 per cent, to 4,891.4 points.
* The broader All Ordinaries index fell 20.1 points, or 0.41 per cent, to 4,899.2 points.
* The June share price index futures contract fell 17 points to 4,895 points, with 29,013 contracts traded.
* The price of gold in Sydney was $US1,551.40 per fine ounce, up 45 US cents on Thursday’s closing price of $US1,550.95.
* National turnover was 1.59 billion securities worth $5.01 billion.
