Resource heavyweights, including Rio Tinto and BHP Billiton weighed on the Australian share market on Thursday amid another wave of mixed company earnings results.
The benchmark S&P ASX/200 index fell 0.36 per cent, with the materials index the biggest drag, finishing 1.37 per cent lower.
Investors are keenly awaiting US Federal Reserve chair Janet Yellen’s comments at the central bank’s meeting at Jackson Hole in Wyoming on Friday, for any hints on the direction of monetary policy.
If Ms Yellen signals interest rates will rise sooner than the market had anticipated, it could lead to the strengthening of the US dollar and a fall in commodity prices, Bell Direct equities analyst Julia Lee said
“Because the Australian share market has exposure to that commodity space we are seeing a fall rather than just treading water ahead of that event,” Ms Lee said.
Rio Tinto dropped 72 cents to $49.10, BHP Billiton fell 39 cents to $21.03 and Newcrest Mining lost 64 cents to $23.34.
Financial stocks also lost ground, with the nation’s biggest bank Commonwealth Bank, falling 46 cents to $74.00.
Westpac fell 39 cents to $30.36, ANZ dropped 22 cents to $26.85 and National Australia Bank lost 21 cents to $27.68.
Bucking the broader market was Woolworths despite it posting a $1.2 billion annual loss on Thursday.
Woolworths announced late Wednesday that it would exit disastrous foray into the hardware market by selling its Home Timber and Hardware business and closing its Masters chain.
“The result was pretty horrific, but I guess it’s a case of is all the bad news priced in and now is there some goods news coming through,” Ms Lee said.
Woolworths shares closed 95 cents higher to $25.17, while rival Wesfarmers gained $1.03 to $43.66.
Amcor jumped 68 cents to $15.99 after the package group reported better-than-expected underlying earnings and outlook, Ms Lee said.
KEY FACTS:
* The benchmark S&P/ASX 200 index was down 19.8 points, or 0.36 per cent, at 5,541.9 points.
* The broader All Ordinaries index was down 22.2 points, or 0.39 per cent, at 5,631.4 points.
* The September share price index futures contract was down 30 points at 5,513 points, with 30,445 contracts traded.
* National turnover was 3.16 billion securities traded, worth $6.56 billion.