The share market is lower as Commonwealth Bank lost value after paying a dividend and ANZ’s trading update disappointing investors.
Commonwealth Bank was down about 2.5 per cent after paying its half year dividend to shareholders, which typically results in a fall in share price.
“It’s paying out cash to shareholders, so that’s taking money out of the market,” CommSec market analyst Juliana Roadley said.
ANZ’s quarterly update, which showed another rise in cash profit but a fall in the profitability of its lending, was also weighing on investor’s minds, she said.
“The result wasn’t that bad, but one thing that we have seen from most of the banks that have reported so far is a concern about their net interest margins,” Ms Roadley said
“When you look at the weighting of those two large stocks in the banking sector being down, that’s pulling the index into the red at the moment.”
Commonwealth Bank had dropped $2.67 to $90.97, ANZ was down 81 cents, or 2.3 per cent, at $35.06, while National Australia Bank was up 23 cents at $37.73 and Westpac was 18 cents higher at $37.83.
In the resources sector, Fortescue Metals had gained one cent to $2.69 despite cutting its dividend after an 81 per cent fall in half year profit.
BHP Billiton was up 14 cents at $32.70 and Rio Tinto was 65 cents higher at $64.20.
Coca-Cola Amatil had added 53 cents to $10.51 after its annual profit tripled, although underlying profit was down 25 per cent.
Jobs website Seek was down $1.97 at $16.76 as its rise in half year profit fell short of expectations.
Patties Foods was up five cents, or four per cent, at $1.315 as it recalled another frozen berry product amid a hepatitis A contamination.
Its shares fell heavily on Monday.
“There’s going to be a bit of caution there about long term growth if they are going to be looking at the cost of these recalls,” Ms Roadley said.
KEY FACTS
* At 1200 AEDT on Tuesday, the benchmark S&P/ASX200 index was down 20.4 points, or 0.35 per cent, at 5,868.3 points.
* The broader All Ordinaries index was down 18.5 points, or 0.32 per cent, at 5,831 points.
* The March share price index futures contract was three points higher at 5,825 points, with 7,860 contracts traded.
* National turnover was 680 million securities worth $2.5 billion.
