The Australian share market has closed slightly down following weak leads from the United States.
The local market outperformed its regional counterparts, with strong performances from defensive stocks providing a level of support under the domestic bourse.
At the close on Thursday, the benchmark S&P/ASX200 index was down 5.6 points, or 0.13 per cent, at 4,337.9, while the broader All Ordinaries index was down 9.5 points, or 0.21 per cent, at 4,422.0
On the ASX 24, the June share price index futures contract was down six points at 4,349.0, with 29,828 contracts traded.
By 1617 AEDT, Japan’s bourse had fallen 0.69 per cent, Hong Kong’s had dropped 1.2 per cent and China’s market was off 0.61 per cent.
The local market outperformed its regional counterparts, CMC Markets chief market strategist Michael McCarthy said.
He said that after Wednesday’s strong gains domestically, the relatively better performance again on Thursday compared with regional markets signalled a substantial commitment to Australian equities by investors.
“The absolute standout is healthcare,” Mr McCarthy said.
“For the second day in a row it’s been the top performing sector and it’s been quietly buoyant for the last two weeks,” he said.
There was an argument that a recent fall back in the Australian dollar was pushing up healthcare stocks with offshore exposures such as CSL, but the strong performance in Sonic Health Care indicates that other factors were at play, he said.
CSL gained $1.15, or 3.27 per cent, to $36.30, while Sonic added nine cents to $12.52.
Other defensive sectors including IT, consumer staples, utilities, telcos and property trusts led the market higher.
“That suggests that while we are seeing greater commitment to equities in Australia, it is still taking a very cautious shape,” Mr McCarthy said.
Telstra firmed two cents to $3.30, Computershare added 17 cents, or 1.93 per cent, to $8.97, and Woolworths advanced 23 cents to $25.64.
Banks and financials, excluding property trusts, posted gains for the sixth consecutive day, with the sector rising 7.5 per cent during the last 15 trading days, Mr McCarthy said.
Three of the big-four banks advanced but Westpac fell six cents to $21.88.
Bank of Queensland plunged 41 cents, or 5.36 per cent, to $7.24 as investors digested the effect of its capital raising.
Materials and oil stocks underperformed, with market heavyweight BHP Billiton falling 36 cents, or 1.04 per cent, to $34.25 and Rio Tinto down 17 cents to $64.36.
Oil Search led oil majors lower after finishing 15 cents, or 2.12 per cent, down at $6.91.
Construction giant Leighton Holdings slumped $1.59, or 6.69 per cent, to $22.16 after it cut its profit forecast by nearly a third because of further losses from its Brisbane Airport Link and Victorian desalination plant works.
Toll road operator Transurban eased five cents to $5.62 after it confirmed its full year distribution guidance despite what it says is a difficult operating environment.
Preliminary national turnover reached 2.3 billion securities, worth $5.16 billion, with 434 stocks up, 569 down and 362 steady.
