Higher gold prices have lifted some mining stocks but the major miners and big banks are weighing on the share market.
The Australian share market had come off Thursday’s solid gains after the US central bank confirmed it’ll retain ultra-low interest rates, Lonsec senior client adviser Michael Heffernan said.
“Fridays are traditionally quiet days and we’re taking our cues from overseas markets,” he said.
“So, it comes as no surprise we’re trading lower after overseas markets were lukewarm overnight.”
The Gold price had risen around three per cent, giving gold miners a boost, including Newcrest Mining which was up 46 cents at $10.85.
But, among the major miners, Rio Tinto fell 47 cents to $58.77, BHP Billiton dropped 27.5 cents to $36.155 and Fortescue Metals was flat at $4.22.
The big four banks were also down, with Commonwealth Bank 42 cents lower at $81.88, National Australia Bank shedding 24 cents to $33.35, Westpac minus 11 cents at $34.34 and ANZ 22 cents weaker at $34.06.
In other news, Australia’s second largest hotel and resort operator Mantra Group has debuted on the share market.
Its shares began trading at $1.80 each at 1200 AEST, valuing the company at $449 million.
At 12.15 AEST, Mantra was up three cents.
Meanwhile, Insurance Australia Group’s $1.85 billion purchase of Wesfarmers’ insurance underwriting business will go ahead after the sale cleared its final regulatory hurdle with Acting federal Assistant Treasurer Mathias Cormann approving the acquisition.
IAG shares fell four cents at $5.84 and Wesfarmers dipped by 27 cents to $41.52.
In other news, Westfield’s $70 billion restructure will go ahead after the shopping centre giant secured enough shareholder support to get the controversial move over the line. Its shares are in a trading halt.
KEY FACTS
* At 1200 AEST on Friday, the benchmark S&P/ASX200 index was down 26.3 points, or 0.48 per cent, at 5,441.9.
* The broader All Ordinaries index was down 24.3 points, or 0.45 per cent, at 5,422.1.
* The September share price index futures contract was 24 points lower at 5,397, with 13,778 contracts traded.
* National turnover was 719 million securities worth $1.2 billion.
