Australian shares closed lower on Friday, ending a flat day of trading ahead of a speech by US Federal Reserve chairman Ben Bernanke, which is scheduled for after the local market closes.
At 1615 AEST, the benchmark S&P/ASX200 index was down 12.8 points, or 0.30 per cent, at 4,200, while the broader All Ordinaries index was 9.5 points, or 0.22 per cent, lower at 4,271.
On the ASX 24, the September share price index futures contract lost 24 points at 4,190, with 33,747 contracts traded.
RBS Morgans Ipswich manager Tony Russell said the market was boosted early in the day by Reserve Bank chairman Glenn Stevens’ comments in Melbourne.
He told the House of Representatives’ Economics Committee he had a grip on inflation, the nation’s banks were in good health and the currency was strong.
But Mr Russell said the market drifted down as investors became more concerned about offshore markets.
“We’re virtually on hold to see where the US market leads us tonight after the Bernanke speech at Jackson Hole,” he said.
MF Global head of Australian equities Sam Willis said investors were nervous and unsure of which way the market would turn ahead of Dr Bernanke’s speech at a meeting of the world’s central banks.
There’s also speculation that he will offer hints as to how the Fed may act to stimulate the ailing US economy.
“The market’s quite flat today,” Mr Willis said.
“What you’re seeing today is people covering shorts and selling longs, so they can have a neutral position and then they can reassess their trading stance on Monday, when the outcome of Bernanke’s comments will be known.”
Making news on Friday, ASX Ltd shares rose eight cents to $29.35 after it appointed Elmer Funke Kupper as its next chief executive to replace Robert Elstone.
Fairfax Media shares rose 5.5 cents, or 7.1 per cent, to 83 cents after it posted a full year loss of $390.9 million in fiscal 2011.
Lend Lease Group lost 30 cents, or 3.66 per cent, to $7.89 after reporting an increased full year profit of $492.8 million and saying it’s well-placed to deliver growth despite the global uncertainty.
The major banks were mixed, with National Australia Bank up eight cents at $23.15.
ANZ was down three cents at $19.85, Westpac was five cents stronger at $20.05 and Commonwealth Bank lost 12 cents to $47.37.
Among the miners, BHP Billiton was up three cents at $38.64 and Rio Tinto had lost 58 cents to $69.15.
The price of gold in Sydney closed at $US1,775.38 per fine ounce, up $US29.68 from $US1,745.70 on Thursday.
National turnover was 1.99 billion shares worth $6.99 billion, with 453 stocks up, 513 down, and 366 steady.
