Last minute selling on the final day of the financial year has weighed down the Australian share market.
Utility and health care stocks are leading the losses while lower commodity prices have dented the mining sector, Bell Direct equities analyst Leanne Jones says.
“There’s a bit of selling across most sectors as the financial year comes to an end and people sell at losses for tax purposes,” she said.
“The only sector holding up is the staples.”
Wesfarmers was up 26 cents to $42.10 but Woolworths was down 17 cents to $35.49.
Among the better performers was electronics retailer Dick Smith, up 3.5 cents to $19.65 after the company announced it had beaten its full-year sales forecast.
As for the major banks, the Commonwealth Bank was down 27 cents at $81.20, Westpac was eight cents lower at $34.09, ANZ had shed eight cents to $33.52 and National Australia Bank was nine cents worse off at $32.94.
Among the major miners, Rio Tinto was 23 cents lower at $59.83, BHP Billiton had dropped 14 cents to $36.28 and Fortescue Metals had declined 12 cents to $4.43.
Meanwhile, shares in bread and biscuit maker Goodman Fielder were placed in a trading halt as investors wait to see whether a $1.4 billion takeover offer goes ahead.
Investors were also waiting to assess the Reserve Bank of Australia’s outlook on the economy when it hands down its cash rate decision on Tuesday afternoon, CMC Markets analyst Ric Spooner said.
“There are also a lot of data releases this week, particularly on the Australian economy, and many investors may be holding off for a clearer picture of the economy or are doing a bit of profit taking,” he said.
In economic news, a private measure of consumer prices rose to its highest level for nearly three years.
The TD Securities – Melbourne Institute Inflation Gauge shows consumer prices were flat in June after rising by 0.3 per cent in May.
However, the annual inflation rate rose to three per cent, which is its highest level since August 2011 and at the top of the central bank’s two to three per cent target range.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was down 17.9 points, or 0.33 per cent, to 5,427.2.
* The broader All Ordinaries index was down 18.5 points, or 0.34 per cent, to 5,410.6.
* The September share price index futures contract was 27 points lower at 5,389, with 17,533 contracts traded.
* National turnover was 566.7 million securities worth $1 billion.
