Australian stocks have closed lower as worries about global growth and skepticism about the latest efforts to revive the US economy succeeding prompted local investors to seek refuge away from the equity market.
At 1615 AEST on Wednesday, the benchmark S&P/ASX200 index was down 11.3 points, or 0.26 per cent, at 4,361.6 points, while the broader All Ordinaries index had fallen 12.5 points, or 0.28 per cent, to 4,383 points.
On the ASX 24, the December share price index futures contract was 18 points lower at 4,367 points, with 19,465 contracts traded.
The local market opened about 0.5 per cent weaker, as market players took their cues from a negative finish on Wall Street on concerns the US Federal Reserve’s latest round of economic stimulus was unlikely to be effective.
“With markets appearing a bit toppy and investors looking for an excuse to sell after the recent run, it’s not too surprising that this headline resulted in a sell-off,” IG Markets strategist Stan Shamu said in a research note.
The worst sector on a day of broadbased selling were metals and minerals companies, which backpedalled 1.34 per cent according to IRESS data.
Materials stocks (down 1.08 per cent) and financial stocks (down 0.17 per cent) – two big market sectors – also ended in red figures.
Among the big declines, BHP Billiton slipped 44 cents, or 1.32 per cent, to $32.81, while Rio Tinto backpedalled $1.08, or two per cent to $52.89.
CMC Markets senior trader Tim Waterer said the weakness among Australia’s mining companies on the stock market reflected concerns over global growth prospects for the period ahead.
“Traders appear to be lacking compelling reasons to buy in the current environment,” Mr Waterer said in a research note.
“This is causing the drift lower on the ASX200 index this week.
“There seems to be a vacuum of any positivity after the latest round of central bank easing announcements.”
Meanwhile, traditionally defensive sectors such as healthcare (up 1.54 per cent), utilities (up 1.39 per cent) and consumer staples (up 0.61 per cent) finished higher.
Making news on Wednesday, Nexus Energy said it had appointed Seven West Media chief executive Don Voelte – a former chief executive of Woodside Energy – as its new non-executive chairman.
Nexus was steady at 12.5 cents.
Alesco shares were placed in a trading halt after the company said it wanted to put a proposal to DuluxGroup, regarding the paintmaker’s $210 million takeover offer for the garage door manufacturer.
Alesco last traded at $2.00, while Dulux closed four cents weaker at $3.23.
The spot price of gold in Sydney was $US1,762.40 per fine ounce, down $US1.96 from Tuesday’s local close of $US1,764.36 per ounce
Preliminary national turnover was 1.6 billion securities worth $3.86 billion, with 409 stocks up, 497 down and 353 unchanged.