The Australian share market has lost ground as renewed concerns about a possible US military strike on Syria outweighed encouraging figures on economic growth.
There was a knee-jerk reaction by investors after some senior US political leaders backed President Barack Obama’s call for the US to take action over the use of chemical weapons in Syria, Lonsec senior client adviser Michael Heffernan said.
“It may have affected the market,” he said.
“But if there is a decline should America strike Syria, it will be an event that will be short-term as far as its negative effect on the market.”
The release of Australian gross domestic product (GDP) figures had a positive influence on trading, although not enough for the main indices to post gains.
“The GDP figures were a bit better than some people had anticipated, although growth was still pretty anaemic over the year as a whole,” Mr Heffernan said.
GDP rose 0.6 per cent in the June quarter, for an annual rate of 2.6 per cent – which was in line with the median market forecast but stronger than what some economists had expected.
Investors were also waiting for Australia’s federal election to pass, Mr Heffernan said.
“There’ll probably be a positive move in the market after that,” he said.
Among the major banks, National Australia Bank lost 32 cents to $32.59, ANZ dropped 28 cents to $29.77, Westpac reversed 32 cents to $31.62 and Commonwealth Bank was 27 cents lower at $73.28.
In the resources sector, BHP Billiton dropped 11 cents to $35.71, while Rio Tinto added 50 cents to $61.55.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was down 35 points, or 0.67 per cent, at 5,161.6 points.
* The broader All Ordinaries index shed 32.4 points, or 0.62 per cent, at 5,156.5 points.
* The September share price index futures contract was 35 points lower at 5,155 points, with 24,337 contracts traded.
* National turnover was 1.4 billion securities worth $3.8 billion.
