The Australian share market has closed slightly weaker as investors sold off defensive and high yielding financial stocks after a couple of days of gains.
CommSec market analyst Steve Daghlian described Wednesday’s falls as modest.
“Thanks to yesterday’s big gain we are still up 1.5 per cent for the week,” he told.
The Australian market has not posted gains for a week or finished up two days in a row for five weeks.
Mr Daghlian said he thought reasonably solid trade figures showing strong import demand in China may have prevented stronger losses.
However that was balanced by a new report showing a surprising drop in consumer confidence this month.
Defensive stocks such as Woolworths and Wesfarmers and some big banks fared poorly, being viewed as less value than the miners.
Wesfarmers finished 37 cents lower at $40.12 while Woolworths was 36 cents weaker at $33.89.
Among the banks, Westpac dipped 37 cents to $30.93, ANZ fell 23 cents to $28.25, Commonwealth Bank retreated 66 cents to $67.30 and National Australia Bank sagged 21 cents to $31.20.
But improved commodity prices attracted investors to resource stocks.
BHP Billiton was more than one per cent higher for a third consecutive day, ending 57 cents stronger at $33.68.
Rio Tinto surged $1.55, or 2.73 per cent, to $58.28, following an even bigger jump on Tuesday.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was down 8.8 points, or 0.18 per cent, at 4,968 points.
* The broader All Ordinaries index was down 6.5 points, or 0.13 per cent, at 4,973.7 points.
* The June share price index futures contract was five points lower at 4,964 points.
* National turnover was 1.56 billion securities worth $4.9 billion.
