The stock market has opened flat, as weakness in banking stocks overshadows a positive lead from overseas.
Markets in Europe and the US rose overnight, but there was an early negative tone on the local market, CMC Markets chief market strategist Michael McCarthy said.
“It’s a bit of a turnaround on the early leads,” he said.
One reason was the relative lack of IT stocks on the Australian market, which were the strongest performers on Wall Street.
The market had also been weighed down by weakness in banking stocks since three of the big four banks – ANZ, Westpac and National Australia Bank – paid out dividends last week.
“With the banks now ex-dividend there’s less compelling reasons for weak holders to stay in,” Mr McCarthy said.
“When they are making up such a significant proportion of the index that is likely to be the key driver today.”
Westpac was down three cents at $32.62, ANZ was also three cents lower at $31.81, National Australia Bank was flat at $33.78 and Commonwealth Bank was 15 cents lower at $77.05.
In resources, BHP Billiton was down 20 cents at $37.62, Rio Tinto had lost 15 cents to $64.98 and Fortescue Metals was six cents lower at $5.76.
Telstra was 1.5 cents higher at $5.145.
Bega Cheese shares were up 13 cents, or nearly three per cent, to $4.58 after Canadian dairy giant Saputo said it would increase its offer for Warrnambool Cheese and Butter.
Bega owns more than 17 per cent of Warrnambool and is competing with Saputo and Murray Goulburn to take over the dairy business.
KEY FACTS
* At 1023 AEDT on Thursday the benchmark S&P/ASX200 index was down 2.1 points, or 0.04 per cent, at 5,353.3 points.
* The broader All Ordinaries index was down 1.5 points, or 0.03 per cent, at 5,350.5 points.
* The December share price index futures contract was five points lower at 5,359 points, with 7,339 contracts traded.
* National turnover was 287 million securities worth $340 million.
