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Australian share market trading lower

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The Australian market is trading lower on the back of weakness on Wall Street and Westpac paying out its dividend.

US markets fell overnight in the wake of better-than-expected US gross domestic product (GDP) growth of 2.8 per cent in the September quarter.

The GDP figures fuelled concerns that the US Federal Reserve will start winding down its economic stimulus program sooner than previously expected.

CMC Markets chief market analyst Ric Spooner said the Australian market’s fall followed the US’ weak lead.

“It’s based on that `good news is bad news’ (the higher US GDP figures may prompt an earlier tapering of stimulus) theory we’ve been seeing a lot of recently,” Mr Spooner said.

“But the reaction of our market has been relatively muted, I think. We’ve rallied a little bit off the lows.”

Mr Spooner said Westpac going ex-dividend had also pulled back the market given the bank’s size.

In the banking sector at 1200 AEDT, Westpac was off 96.07 cents at $33.17, ANZ had lifted 18 cents to $32.56, National Australia Bank was steady at $34.68, while Commonwealth Bank had firmed six cents to $79.38.

A fall in the iron ore price weighed upon the resources sector.

Global miner BHP Billiton lost 47.5 cents to $37.765, Rio Tinto surrendered 66 cents to $64.82, and Fortescue Metals shed 30 cents to $5.40.

Airline Qantas was 1.25 cents higher at $1.2375 after it confirmed it will close its Avalon heavy maintenance facility at the end of March 2014, resulting in the loss of 299 jobs.

Casinos operator Echo Entertainment was 18 cents weaker at $2.37 after it said it could spend up to $1.5 billion on redeveloping its Queensland casinos.

KEY FACTS

* At 1210 AEDT on Friday, the benchmark S&P/ASX200 index was down 26.2 points, or 0.48 per cent, at 5,395.8 points.

* The broader All Ordinaries index was down 25.8 points, or 0.48 per cent, at 5,389.6 points.

* The December share price index futures contract was 19 points lower at 5,410 points, with 13,592 contracts traded.

* National turnover was 756.8 million securities worth $2.2 billion.