Australian shares have lost ground as insurance giant QBE’s losses weighed on the financial sector.
QBE shares fell more than 22 per cent after the company said it expects to post a $250 million loss for calendar 2013 because of weakness in the North American market.
Other insurers also fell, as did the big four banks.
Australian Stock Report analyst Benny Sada said investors were continuing to book profits, with valuations of the big four banks appearing stretched.
“Our market has underperformed its international peers as it has done over the past week,” Mr Seda said.
“The banks are underperforming again, with some profit taking after a pretty strong run.
“QBE’s news has also damaged sentiment.”
The market’s fall came despite a strong lead from Wall Street, which was boosted by a better than expected November jobs report.
QBE was the worst performing stock among the market’s top 200 companies, shedding $3.45, or 22.3 per cent, to $12.00.
AMP dropped 10 cents to $4.35, Insurance Australia Group lost six cents to $5.72, but Suncorp gained three cents to $12.50.
Among the banks, Westpac dropped 42 cents to $31.09, ANZ lost 24 cents to $30.75, Commonwealth Bank shed 27 cents to $74.90 and National Australia Bank closed 30 cents lower at $33.17.
In the resources sector, BHP Billiton added two cents to $36.77 and Rio Tinto added 12 cents at $66.53.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was down 41.6 points, or 0.8 per cent, at 5,144.4.
* The broader All Ordinaries index was down 37.6 points, or 0.73 per cent, at 5,148.4.
* The December share price index futures contract was 35 points lower at 5,149, with 27,946 contracts traded.
* National turnover was 1.7 billion securities worth $4.3 billion.
