The Australian share market has closed more than one per cent lower, despite encouraging manufacturing data from China.
At the close on Thursday, the benchmark S&P/ASX200 index was down 59.4 points, or 1.3 per cent, at 4,457.6, while the broader All Ordinaries index had lost 55.5 points, or 1.2 per cent, at 4,479.9.
On the ASX 24, the December share price index futures contract was 63 points lower at 4,441, with 39,303 contracts traded.
IG Markets analyst Stan Shamu said most sectors were weaker.
“It’s hard to tell what caused the weakness,” Mr Shamu said.
“It’s more to do with a lack of buying to support some of these stocks affecting their price action.”
Mr Shamu said much of the recent market support had come from the materials sector.
“Materials has had a good run, so some people might be taking profits,” he said.
China’s manufacturing improved in October, adding to signs the world’s second-largest economy might be recovering from its deepest slump since the 2008 global financial crisis, two business surveys show.
Among Australian-listed resources stocks, global miner BHP Billiton was down 43 cents at $33.82, and Rio Tinto was 69 cents weaker at $56.25.
Network Ten shares fell one cent to 27 cents after reports funds manager Perpetual sold a 7.8 per cent shareholding in the broadcaster valued at about $30.2 million.
Perpetual sagged $1.20 to $26.74 after it said it expected its first half underlying profit to be in line with the previous year’s, as it continues to overhaul its business to improve returns.
Whitehaven Coal lost five cents to $3.00 after managing director Tony Haggarty said investors had sent majority shareholder Nathan Tinkler a clear message after they overwhelmingly re-elected chairman Mark Vaile and four other directors.
Shares in steelmaker Arrium plunged 10 cents, or 12.7 per cent, to 69.5 cents after its Asian consortium suitor walked away from a takeover bid.
Among the major banks, National Australia Bank dropped 77 cents to $25.02, Westpac shed 37 cents to $25.14, Commonwealth Bank shed 48 cents to $57.27 and ANZ fell 12 cents to $25.33.
Transfield Services lifted 0.5 cents to $1.59 after shareholders ratified the appointment of chief executive Graeme Hunt
National turnover was 1.98 billion securities worth $4.88 billion, with 354 stocks up, 601 down and 345 unchanged.
