The share market has finished weaker for the fourth straight day as the Reserve Bank’s monetary policy statement took the shine off banking stocks and falling crude oil prices belted energy stocks.
While the central bank appeared to be open minded about another rate cut, banking shares were sold off soon after the central bank statement was released, causing the broader market to re-enter negative territory by lunchtime.
This occurred as dividend-focused investors took the view the monetary policy easing cycle was probably over, OptionsXpress market analyst Ben Le Brun said.
“If that’s the end of the rate cycle, have we seen the high watermark for banks?” he said.
“Maybe it’s time to pause for reflection on what has been an incredibly volatile week and the dynamics there from an RBA perspective.”
Among the banks, Macquarie Group added $2.68, or 3.5 per cent, to $79.18 after lifting its full year profit 27 per cent, to $1.6 billion, beating both market expectations and its own guidance.
But the major players were mainly weaker.
The Commonwealth was down 47 cents at $82.64, ANZ fell 66 cents to $32.35 but Westpac gained 15 cents to $34.05.
NAB has been in a trading halt since Thursday after announcing that it will engage in a mammoth $5.5 billion capital raising.
Banking and insurance group Suncorp lost two cents to $12.95 after lifting its total lending 3.3 per cent during the three months to March 31.
The energy stocks were the weakest performers, after the West Texas and Brent North Sea oil prices dived overnight after hitting 2015 highs, with crude oil prices continuing to weaken during Asian trade.
Oil and gas explorer Woodside Petroleum dropped $1.26, or 3.6 per cent, to $33.80 and Santos fell 44 cents or 4.9 per cent, to $8.59.
As for the miners, BHP Billiton fell 59 cents to $31.30, after shareholders this week approved its plans to demerge non-core parts of the business.
Rio Tinto was down 11 cents at $58.43 and iron ore group Fortescue Metals fell eight cents to $2.50.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was down 11.1 points, or 0.2 per cent, at 5,634.6.
* The broader All Ordinaries index was down 9.4 points, or 0.17 per cent, at 5,635.4.
* The June share price index futures contract was 12 points lower at 5,605 with 31,895 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,185.90 per fine ounce, up $US2.40 from $US1,183.50 on Thursday.
* National turnover was 1.3 billion securities worth $4.3 billion.
