The Australian share market closed lower after being dragged down by risk averse investors abandoning resources stocks.
A speech by US Federal Reserve chief Ben Bernanke gave a downbeat assessment of the world’s biggest economy for the second half of 2012, but he did not commit to a fresh economic stimulus package unless things got worse.
At the close on Wednesday the benchmark S&P/ASX200 index was down 17.2 points, or 0.41 per cent, at 4,123.6, while the broader All Ordinaries index was down by 18.9 points, or 0.45 per cent, at 4,156.4.
The September share price index futures contract was 14 points lower at 4,092, with 25,626 contracts traded.
US stocks closed higher, giving Australia a positive lead but ASX stocks closed weaker anyway.
Local investors did not buy Dr Bernanke’s message as Americans had because the Australian bourse was so resources-heavy and there were concerns about commodities demand, CMC Markets senior trader Tim Waterer said.
“We probably would’ve liked him to lean one way or another with QE3 (quantitative easing) in coming months,” he told AAP.
“The market likes to deal in shades of black and white; grey is met with a selling approach as we’ve seen today.
“It was a tale of two halves in the market today with any buying momentum going towards financial stocks eking out modest gains.”
Resources stocks, including mining and energy companies, finished more than two per cent weaker.
BHP Billiton shrank 61 cents, or 1.98 per cent, to $30.29, which is its lowest level since February 2009.
Investors were more concerned about the future including slowing growth in China and the dire economic situation in Europe, than the mining giant’s June quarter production report in which it lifted iron ore production to record levels.
Fellow mining major Rio Tinto faced the same issues, plunging to three-year lows, shedding $1.66, or 3.5 per cent, to $52.78.
The higher dividend paying banks fared better, with the biggest market value company on the ASX after BHP, Commonwealth Bank, the best performer up 35 cents to $55.25.
Westpac was nine cents stronger to $22.59, as was ANZ which lifted nine cents to $22.96, and National Australia Bank gained seven cents to $23.77.
Ports operator Asciano closed three cents stronger at $4.37 after wearing union criticism for plans to cut 270 jobs once a $348 million expansion of its container terminal at Sydney’s Port Botany is completed in 2014.
Gerard Lighting Group shares leapt up 21.5 cents to $1.02 on resumption of trading after it recommended shareholders accept a $186 million takeover offer from Lighting Group Australia Pty Ltd.
National turnover was 1.4 billion securities worth $3.5 billion, with 355 stocks up, 519 down and 349 unchanged.
