The Australian share market closed lower on Thursday as cautious investors searched for an elusive lead.
At the 1615 AEDT close, the S&P/ASX200 index was 42.9 points, or 1.0 per cent, lower at 4,255.6 points, while the broader All Ordinaries index had fallen 42.1 points, or 0.96 per cent, to 4,346.0.
The ASX 24 March share price index futures contract was 35 points lower at 4,253 points, on a volume of 33,894 contracts, according to preliminary figures.
CMC Markets chief market strategist Michael McCarthy said the local bourse was looking for a catalyst to push forward after a modestly good season for company earnings reports, but it had not been forthcoming from US and European markets.
“We’re still nowhere near boom conditions, and investors remain cautious even though they own more shares than they did three months ago,” Mr McCarthy said.
Mr McCarthy said investors had endured a rough ride over the last four years and they were “scarred”.
“They’re unlikely to get gung-ho about equities for a long time given that experience,” he said.
Mr McCarthy said, however, that the trading range of the market was narrowing, which was a sign that the market was calming and investor confidence would build over time.
Mr McCarthy said encouraging employment figures in the US indicated that the US economy was recovering, there was still demand for China and India for resources, and although the euro zone debt crisis was not fully resolved, its threat to the global credit system was not as frightening as it had been.
On the local market on Thursday, retailer Woolworths was one cent lower at $25.30 after it booked a fall in first half net profit of more than 16 per cent and said it expected trading conditions to remain subdued for the rest of the year.
Media group News Corp was seven cents lower at $18.79 as James Murdoch has stepped down from his role at at the head of News Corporation’s UK newspapers unit.
In the resources sector, global miner BHP Billiton was 55 cents lower at $35.55, and Rio Tinto retreated $1.20 to $66.25.
Among the major banks, National Australia Bank was nine cents weaker at $23.58, Westpac eased 20 cents to $20.70, ANZ fell 26 cents to $21.69, and Commonwealth bank surrendered 37 cents to $49.06.
Preliminary national turnover was 2.03 billion shares worth $4.5 billion, with 665 stocks down, 385 up and 394 unchanged.
