PERTH: The Australian sharemarket has closed lower for a third straight day, taking the total decline this week to 3.4 per cent.
Slumping banking stocks weighed down the bourse today, as stronger than expected economic figures gave investors a sign that the Reserve Bank’s easing cycle may have drawn to a close, sparking a rally in the Australian dollar.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was down 52.4 points, or 0.93 per cent, at 5583.6, while the broader All Ordinaries index was down 51.6 points, or 0.91 per cent, at 5588.3.
Today’s close puts the benchmark index just a fraction above a fourth-month low.
The sharemarket opened lower and extended losses after the Australian Bureau of Statistics’ quarterly GDP figures beat expectations, with the economy expanding 0.9 per cent in the three months to March.
The annual rate of growth, which fell from 2.5 per cent to 2.3 per cent, also beat expectations, albeit remaining well below the long-term trend rate of around 3.25 per cent.
The Australian dollar jumped above the US78c level in the minutes following the announcement, posting a one-week high for the resurgent currency.
CommSec market analyst Steven Daghlian said the local market was now testing support levels around the fourth-month low.
