PERTH: The Australian sharemarket declined for a fifth straight day on Friday as investors continued to punish banks for disappointing earnings this week while the exchange rate dragged on resources stocks.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was down 27.5 points, or 0.52 per cent, to 5239.4, while the broader All Ordinaries fell 21.6 points, or 0.41 per cent, to 5288.6.
Today’s benchmark fall put it down 2.1 per cent for the week, following last week’s rise of 1.6 per cent.
The benchmark had sunk 1.07 per cent at the market open, as investors rushed out of blue-chip stocks following a string of disappointing earnings and trading updates, including from NAB and ANZ, during the week.
“After ANZ and NAB’s results, sentiment around the banks has clearly soured with most investors believing the days of strong growth are over,” IG market strategist Angus Nicholson said.
Meanwhile, Mr Nicholson said the US Federal Reserve’s “unexpectedly” hawkish statement on rate rises on Thursday morning had dragged on resources stocks, as an improving US dollar weighed on commodity prices.
“The stronger US dollar and patchy bank results pushed the ASX down further today,” he said.
The Australian market followed soggy global leads which saw European stocks fall and Wall Street bourses edge down as investors digested the Fed’s statement, which hinted at a December return to long-awaited rate rises.
In economic news, Reserve Bank of Australia data today showed private sector credit grew faster than expected in September, up 0.8 per cent against expectation of a 0.5 per cent lift.
Overseas, the Bank of Japan opted not to bolster its stimulus program despite the release of weak economic data in the run-up to the decision.
Materials were off 1.3 per cent.
BHP Billiton was down 1.92 per cent to $23.02 while Rio Tinto lost 0.96 per cent to $50.65.
Financials were down 0.76 per cent.
ANZ shares slumped 3.41 per cent to $27.21 following the momentum from yesterday’s less-than-ideal figures.
Commonwealth Bank dropped 0.57 per cent to $76.73 while Westpac shares were down 1.69 per cent $31.35.
Consumer staples again led the declines, off 1.8 per cent with Woolworths extending yesterday’s sell-off, down 2.39 per cent at $24.11.
