Heavy falls by energy stocks have pulled the share market lower, reversing early gains.
The likes of Oil Search and Santos, plus all four big banks, lost ground and offset gains by retailers and the big miners.
“The weakness has been driven by the energy sector with weakness among the bank stocks adding to that story,” CommSec economist Savanth Sebastian said.
The third fall by the market in five days took its drop for the week to 2.5 per cent, leaving the main indices near two year lows.
Consumer related stocks including Flight Centre and Myer had been boosted by the prospect of a weaker Australian dollar, given the US Federal Reserve’s commitment to hiking rates some time this year, he said.
“The low currency is supporting consumer discretionary stocks because it helps with inbound tourism numbers,” Mr Sebastian said.
“Tourists have more spending power in Australia now.
“Australia is now the second cheapest place in the world to purchase an iPad in US dollar terms.”
In the energy sector, Oil Search dropped 29 cents, or 3.7 per cent, to $7.56, Santos lost 17 cents, or 3.5 per cent, to $4.65 and Woodside Petroleum declined 43 cents, or 1.5 per cent, to $29.07.
Commonwealth Bank shed $1.06 to $71.44, National Australia Bank was down 41 cents at $29.79, Westpac also dropped 41 cents to $29.95 and ANZ was 34 cents weaker at $27.00.
BHP Billiton added eight cents to $22.93 and Rio Tinto gained 65 cents to $48.95.
Among the better performers, Myer added seven cents at 90 cents, Flight Centre put on $1.33 to $35.43 and JB Hi-Fi was three cents stronger at $19.08.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was down 29.6 points, or 0.58 per cent, at 5,042.1 points.
* The broader All Ordinaries index was down 25.6 points, or 0.5 per cent, at 5,076.7 points.
* The December share price index futures contract was down 26 points at 5,032 points, with 37,279 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,146.00 per fine ounce, up $US9.40 on Thursday’s price of $US1,136.60.
* National turnover was 2.2 billion securities worth $6.5 billion.
