The Australian share market finished firmly lower after battling headwinds on all fronts, with negative offshore leads, concerns about Greece’s debt woes and disappointing Australian gross domestic product (GDP) figures all weighing on the bourse.
The benchmark S&P/ASX200 index was down 61 points, or 1.45 per cent, at 4,143.7 points, while the broader All Ordinaries index shed 61.1 points, or 1.42 per cent, to 4,234.4 points.
On the ASX 24 at 1638 AEDT, the March share price index futures contract was 69 points lower at 4,141 points, with 43,468 contracts traded.
Austock Securities senior client advisor Michael Heffernan said Wednesday’s trading session was unequivocally negative, with commodity markets putting in the worst performance for some time overnight.
The biggest weight on the market was ongoing concern about a Greek default as a Thursday deadline loomed for Greek bondholders to accept a debt swap deal.
“Greece is sending shivers around the place,” Mr Heffernan said.
“Sentiment is a bit shaky, like it was when the Greek situation was front and centre months ago.
“But I think we’ll get over it. My view is the creditors will make an agreement to take, as they call it, the haircut, and certainly when you look at the US futures market, that’s positive at the moment.”
Mr Heffernan said the Australian share market’s performance on Wednesday wasn’t too bad, considering sharper falls on overseas bourses overnight.
Australian GDP rose by 0.4 per cent in the December quarter, at a slower pace than had been forecast, showing the domestic economy was “still pretty anaemic”, he said.
“The only silver lining that is that it might, of course, cause the Reserve Bank to get out of its terms-of-trade torpor and actually cut rates next month.
“There seems to be gathering momentum for that.”
Market heavyweight BHP Billiton was down 53 cents, or 1.53 per cent, at $34.05, while Rio Tinto backtracked $1.20, or 1.89 per cent, to $62.42 after announcing it would close its Lynemouth aluminium smelter in Northumberland, England.
The big four banks were all weaker, with Commonwealth Bank losing the most ground, down 92 cents, or 1.89 per cent, at $47.66.
Making headlines on Wednesday, Telstra will participate in the rollout of the national broadband network (NBN) after finalising its $11 billion agreement with the federal government and NBN Co.
Telstra inched two cents lower to $3.23.
Packaging maker Amcor will expand its flexible packaging business with the $238 million acquisition of Aperio Group.
Amcor gained 10 cents, or 1.47 per cent, to $6.90.
A final decision on Foxtel’s proposed takeover of Austar appears to be some way off after the competition regulator opened a new round of market consultation on the $2.5 billion transaction.
However, Austar rose seven cents, or 5.15 per cent, to $1.43 after Foxtel said it was doing all it could to secure the deal.
The spot gold price in Sydney at 1641 AEDT was $US1,675.80 per fine ounce, down $US26.45 from Tuesday’s local close of $US1,702.25 per ounce.
Australia’s largest gold miner Newcrest was down $1.22, or 3.83 per cent, at $30.60.
Preliminary market turnover was 2.17 billion shares worth $5.13 billion, with 317 stocks up, 707 down and 360 steady.
