SYDNEY: The Australian sharemarket retreated today as several corporate earnings results failed to impress and the banks’ new regulatory requirements continued to weigh on investors’ minds.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 was 36 points, or 0.65 per cent, lower at 5473.2, while the broader All Ordinaries index had fallen 31.8 points, or 0.58 per cent, to 5473.1.
IG chief market strategist Chris Weston said investors were still concerned about banks’ upcoming regulatory requirements regarding capital ratios, with Bendigo and Adelaide Bank falling again after yesterday’s profit result and the sub-sector down generally — although CBA’s positive session was encouraging.
“This bodes well for its earnings report tomorrow with the market pricing in an expected capital raise to shore up its CET1 (Common Equity Tier 1) ratio requirements, however there is still plenty of opportunity for it to head downwards if there is a worse than expected bad and doubtful debts number from its resource sector exposure,” he said.
