The Australian share market has closed lower as investors put aside a positive lead from US markets and took a breather from a strong run upwards in recent months.
US stocks rose on Friday after better-than-expected jobs growth in the US in October.
The rise ended a recent trend of good economic data sending stocks lower, which had been caused by expectations that the US would start to taper its economic stimulus program once the US economy shows signs of a sustained recovery.
IG market strategist Evan Lucas said the major banks had led the Australian bourse lower on Monday now that three of them had recently paid dividends.
Investors in the banks were now reassessing their position.
“It comes down to the banks. The banks have been pretty weak today,” Mr Lucas said.
He said investors were also waiting for further reaction to the US job numbers and were probably positioning themselves for the tapering of economic stimulus in the US.
In general, the Australian market was also due for a pull-back after four “outstanding” months of gains.
Mr Lucas said a major economic forum under way in China at the moment may provide the next major drive for the market.
A decision by the Chinese to ease their one-child policy or make it easier for rural people to access city dwellings would be a major driver for the resources sector.
Among the major banks, ANZ was down 57 cents at $32.14, Commonwealth Bank shed 75 cents at $78.35, National Australia bank dipped 22 cents to $34.56, and Westpac dropped six cents to $33.12.
In the resources sector, global miner BHP Billiton eased four cents to $37.91, and Rio Tinto fell 18 cents at $65.07.
Fortescue Metals slipped two cents to $5.44 after the company repriced $5 billion in debt and reduced interest payments.
Explosives and chemicals supplier Orica jumped $2.27, or 11.62 per cent, to $21.81 after it said it expects higher profits over 2014 as key North American coal markets improve.
Rural services company Elders lost two cents to 11.5 cents after it said it expects to report a loss of more than $500 million for its recently concluded fiscal year.
Toll roads operator Transurban reversed three cents to $7.04 after it moved towards a possible purchase of Sydney’s Cross City Tunnel (CCT) by buying the toll road’s senior debt.
KEY FACTS
* At 1621 AEDT on Monday, the benchmark S&P/ASX200 index was down 13.6 points, or 0.25 per cent, at 5,387.1 points.
* The broader All Ordinaries index was down 13.6 points, or 0.25 per cent, at 5,380.8 points.
* The December share price index futures contract was down 10 points at 5,399 points, with 29,293 contracts traded.
* National turnover was 1.8 billion securities worth $3.38 billion.
