Australian stocks closed marginally lower on a day of low volumes as gains among finance-linked companies were offset by weakness in the energy sector.
At 1615 AEST on Thursday, the benchmark S&P/ASX200 index was down 6.9 points, or 0.16 per cent, at 4,429 points, while the broader All Ordinaries index had fallen 10.3 points, or 0.23 per cent, to 4,494.5 points.
On the ASX 24, the June share price index futures contract was four points lower at 4,425 points, with 22,364 contracts traded.
The Australian market opened about 0.07 per cent firmer and traded sideways for most the day before dipping slightly into negative territory during the afternoon.
Leading the charge lower were energy stocks, which fell 0.99 per cent according to IRESS data.
The materials sector, a big part of the market, slipped 0.43 per cent.
“The materials and energy sector have underperformed today due to weaker commodity prices overnight and a rising US dollar,” CMC Markets sales trader Ben Taylor said in a research note.
“However, the Westpac first half result helped to give the banks reason to move higher.”
Westpac said first half net profit fell 25 per cent to $2.97 billion due to growing bad debts and rising costs associated with setting up the Bank of Melbourne. The result was broadly in line with market consensus.
The bank also announced an improved fully-franked dividend of 82 cents per share, up from 80 cents in the prior corresponding period.
Two of the big four retail banks posted gains – Westpac rose 22 cents to $22.91 and National Australia Bank ended 10 cents firmer at $25.20.
Commonwealth Bank was steady at $52.68 and ANZ slipped 16 cents to $23.64.
Finance-linked stocks rose 0.09 per cent, according to IRESS data, while the best-performing sector was consumer staples, which advanced 0.4 per cent.
E L & C Baillieu Stockbroking director Richard Morrow said the market was on hold prior to the federal budget.
“The market is very quiet in the lead up to the budget next Tuesday,” Mr Morrow said.
“It seems to be still not finalised at present, and that’s keeping a lid on things.”
In other news, retailer Harvey Norman said pre-tax profit for the first nine months of the financial year dipped 25 per cent as sales continued to fall in the three months to March.
The stock slid three cents to $2.04.
A number of other retailers also struggled – JB Hi-Fi fell 14 cents to $9.40, The Reject Shop backpedalled five cents to $11.75 and Billabong was six cents lower at $2.54.
Preliminary national turnover was 1.97 billion shares worth $4.59 billion, with 424 stocks up, 574 down and 385 unchanged.
The spot price of gold in Sydney was $US1,646.80 per fine ounce, down $US9.26 from Wednesday’s local close at $US1,656.06 per ounce.