The Australian share market remains lower as traders cool off after a worldwide rally sparked by the US central bank’s surprise stimulus decision.
The US Federal Reserve announced on Thursday it would continue its bond-buying scheme – an unexpected decision that sent the local market to a new five year high.
But trade fell away on Friday, CMC chief market analyst Ric Spooner said.
“It’s a reasonably quiet day,” he said.
“The big upward momentum kicked off by the Fed really didn’t carry on.”
Mr Spooner said the Fed’s announcement was unlikely to have a lasting impact on local equities.
“It’s not as if there’s going to be new stimulus,” he said.
“We’re talking about the existing stimulus remaining in place for longer – and it may only be a bit longer.”
The big miners were weaker at noon, with BHP down 34 cents at $36.34, Rio Tinto 87 cents lower to $62.76 and Fortescue Metals Group off 9.5 cents to $4.485.
The major banks were mixed, with Commonwealth Bank down 12 cents at $73.68, Westpac down 14 cents at $32.84, ANZ down five cents at $31.21, but National Australia Bank up 22 cents at $35.25.
Supermarket stocks were also higher, with Woolworths up six cents to $34.83 and Wesfarmers, which owns Coles, up nine cents at $41.49.
Telstra had added two cents at $4.94.
KEY FACTS
* At 1230 AEST, the benchmark S&P/ASX200 index was down 19 points, or 0.36 per cent, at 5,276.5.
* The broader All Ordinaries index was down 19.6 points, or 0.37 per cent, at 5,269.
* The December share price index futures contract was 26 points lower at 5,281, with 10,720 contracts traded.
* National turnover was 914 million securities worth $1.57 billion.
