Australian shares have fallen from their five year highs as investors are unwilling to push prices higher.
The local market is following negative leads from markets in the US and Europe, ahead of a US Federal Reserve meeting next week where a decision is expected on a winding back of its economic stimulus program.
Gold and other precious metals also slumped overnight as positive US labour market data bolstered expectations of a reduction in stimulus.
After a week of consecutive daily gains on the ASX, short term traders were now selling to protect profits, CMC Markets chief market analyst Ric Spooner said.
“The higher the market gets the greater the risk is,” he said.
The biggest falls were in gold stocks, with Newcrest Mining dropping 37 cents, or three per cent, to $11.86 and Evolution Mining shedding 4.2 cents, or five per cent, to 84.8 cents.
Other Australian mining stocks were also lower, after gaining about two per cent for the week before Friday.
BHP Billiton had given up 40 cents to $36.18, Rio Tinto had dropped $1.01 to $63.19 and Fortescue Metals Group was 6.5 cents lower to $4.595.
The major banks were also down.
National Australia Bank was off 19 cents at $33.66, ANZ had lost 21.5 cents to $30.155, Commonwealth Bank had dropped 42 cents to $73.56 and Westpac was 35 cents lower at $32.07.
Department store Myer posted the heaviest loss of the market’s top 100 companies, after reporting a drop in annual profit on Thursday, losing 10.5 cents, or 3.6 per cent, to $2.67.
KEY FACTS
* At 1215 AEST, the benchmark S&P/ASX200 index was down 20.8 points, or 0.4 per cent, at 5,221.7.
* The broader All Ordinaries index was down 20 points, or 0.4 per cent, at 5,218.2.
* The September share price index futures contract was 18 points lower at 5,221, with 19,908 contracts traded.
* National turnover was 632.5 million securities worth $1.2 billion.
