The share market has reversed earlier gains to close lower after falls by financials and healthcare companies outweighed gains in the energy and telco sectors.
The benchmark S&P/ASX200 was down 0.2 per cent at 5,737.2 points at the close of trade, after being 0.2 per cent higher in early trade.
Morgans senior private client adviser Bill Chatterton said disappointing financial results from insurer IAG hurt the financial sector.
“The negativity in the market is coming from the banks and insurers,” he said.
IAG shares dropped eight per cent to a three month low of $6.22 after higher natural disaster claims hurt its profit margins.
AMP shed 3.1 per cent to $4.96, nib dropped 3.7 per cent to $5.73 and Suncorp fell fell 1.1 per cent to $12.72.
The big four banks were relatively steady, though Commonwealth Bank shed 0.6 per cent, and faces a potential shareholder class action related to the allegations it breached anti-money laundering laws.
The health care sector was also impacted by disappointing financial results.
Private hospital operator Healthscope dropped 15 per cent to $1.855 after its full year profit declined 39 per cent, and liver cancer treatment developer Sirtex Medical plunged 10.5 per cent to $14.56 after it ended a challenging year with a $26.3 million loss.
Telstra gained 1.3 per cent to $3.91, though remains well below where it was before the company recently announced a reduction in dividends.
The energy sector was also stronger, with Woodside Petroleum, Santos, Oil Search and Origin gaining between 0.85 per cent and 1.9 per cent after global oil prices rose on expectations of further falls in US supplies.
A2 Milk shares hit a record high of $4.81, up 6.9 per cent, after strong demand for its infant formula in China and Australia almost tripled its annual profit.
Coca-Cola Amatil fell 2.6 per cent to $8.25 after its half year profit fell 29 per cent and it said new products would boost its second half performance.
Woolworths dropped 0.4 per cent to $26.94 after posting a $1.5 billion full year profit, though its underlying profit was hurt by a significant loss from Big W.
The Australian dollar dropped below 79 US cents as the US dollar rose on improved sentiment around the Trump’s administration’s economic agenda.
ON THE ASX:
* The benchmark S&P/ASX200 was down 12.9 points, or 0.22 per cent, at 5,737.2 points.
* The broader All Ordinaries index was down 12.1 points, or 0.21 per cent, at 5,792.7 points.
* The September SPI200 futures contract was down 16 points, or 0.28 per cent, at 5,697 points.
* National turnover was 3.2 billion securities traded worth $7.3 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 78.92 US cents, from 79.40 US cents on Tuesday
* 86.36 Japanese yen, from 86.86 yen
* 67.13 euro cents, from 67.34 euro cents
* 61.56 British pence, from 61.68 pence
* 109.23 NZ cents, from 108.55 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,286.15 per fine ounce, up from $US1,285.00 per fine ounce on Tuesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.9144pct, from 1.8927pct
* CGS 4.75pct April 2027, 2.6226pct, from 2.5931pct
Sydney Futures Exchange prices:
* September 2017 10-year bond futures contract at 97.33 (implying a yield of 2.67pct), from 97.36 (2.64pct) on Tuesday
* September 2017 3-year bond futures contract at 98.0 (2.0pct), from 98.02 (1.98pct).
(*Bond market closes taken at 1630 AEST previous local session; currency closes taken from 1700 AEST previous local session)