The Australian share market gave up its early gains to close lower, and has not had a positive day in a week.
Australian stocks were down for the fourth day in a row and were flat last Tuesday, meaning the bourse has not had a day of gains since last Monday.
The ASX200 and All Ordinaries indexes were both more than 0.6 per cent higher in early trade but falls in banking, consumer staples and telco stocks in the afternoon outweighed gains by resources stocks.
Phillip Capital senior client adviser Michael Heffernan said other than a view that the big banks produced some ordinary financial results last week, there was no major reason for the market to fall.
“Clearly the budget is hanging over people’s heads this week, as interest rates were last week and the banks reporting,” he told AAP.
“A soft period in May-June seems to happen more years than not, but I don’t think it is anything too terminal and I would say the budget will be more positive than negative for the market.”
The Commonwealth Bank fell 47 cents to $82.17, Westpac dropped 35 cents to $33.70 and ANZ shed 43 cents to $31.92.
National Australia Bank shares remain in a trading halt as it continued its $5.5 billion capital raising.
Among consumer staples stocks, Wesfarmers’ shares closed 39 cents lower at $43.35 while Woolworths fell 24 cents to $27.14.
Telstra gave up 12 cents, or 1.9 per cent, to $6.05.
Mining and energy stocks fared better after a rate cut from the People’s Bank of China had lifted oil and iron ore prices.
BHP Billiton rose 52 cents to $31.82, Rio Tinto was up 19 cents at $58.62 and Fortescue Metals increased by seven cents to $2.57.
Woodside Petroleum jumped 70 cents to $34.50 and Santos closed flat at $8.59.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was down 9.4 points, or 0.17 per cent, at 5,625.2.
* The broader All Ordinaries index was down 7.8 points, or 0.14 per cent, at 5,627.6.
* The June share price index futures contract was 28 point lower at 5,574 with 35,482 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,185.30 per fine ounce, up $1.40 US cents from $US1,183.90 on Friday.
* National turnover was 1.6 billion securities worth $4.3 billion.
