The Australian share market has fallen almost one per cent on Friday as investor concern about a possible end to European monetary stimulus hit a final negative note in a week of decline for local stocks.
The S&P ASX/200 index closed 0.87 per cent lower at 5,339.2 points.
Investors were underwhelmed with the European Central Bank’s indication it likely will not extend its monetary stimulus program overnight, CMC Markets chief market strategist Michael McCarthy said.
Also affecting sentiment was ongoing concern about a looming US interest rate rise amid more hawkish talk from the US Federal Reserve, said Mr McCarthy.
“Central bank concerns are weighing on the market,” he said.
“There will also be plenty to fret about next week with a number of important Australian and international reads ahead of Japan and the US central banks’ decisions (later in the month).”
On the local market, falls in bank stocks weighed heavily with the Commonwealth Bank dropping $1.19, or 1.65 per cent to $70.87, ANZ falling 32 cents, or 1.18 per cent, to $26.76, National Australia Bank shedding 37 cents, or 1.34 per cent, to $27.30, and Westpac down 49 cents, or 1.63 per cent, to $29.54.
Major supermarkets and retailers also suffered losses with Woolworths 42 cents lower at $22.85 and Wesfarmers down 46 cents at $42.65.
Most sectors closed in the red except for the resource and energy players on the back of better commodity prices, with global oil prices jumping between four and five per cent on Thursday night.
Oil and gas giant Woodside Petroleum rose 31 cents, or 1.11 per cent, to $28.32, while Oil Search gained 25 cents or, 3.84 per cent, to $6.76.
Santos bucked the energy sector trend to fall eight cents, or 1.96 per cent, to $4.00.
Among the major miners, Rio Tinto gained 58 cents, or 1.21 per cent, at $48.60 while BHP Billiton was up 52 cents, or 2.57 per cent, at $20.78.
The key event for Australia next week will be the release of official job numbers and the unemployment rate on Thursday.
KEY FACTS:
* At 1615 AEST on Friday, the benchmark S&P/ASX 200 index was down 46.6 points, or 0.87 per cent, at 5,339.2 points.
* The broader All Ordinaries index was down 44.1 points, or 0.8 per cent, at 5,440.5 points.
* The September share price index futures contract was down 36 points at 5,329, with 38,266 contracts traded.
* National turnover was 2.57 billion securities traded, worth $6.5 billion.
