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Aust share market lower on weak banks

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The Australian share market has closed more than one per cent lower after the big four banks sagged, taking their lead from global markets.

Financial stocks took a hit on Friday due to sentiment in offshore markets, Macquarie Private Wealth division director Lucinda Chan said.

“It’s actually holding quite well I think given how severe the offshore markets did plummet, we actually held on better,” Ms Chan said.

“I don’t think currently this market is trading on fundamentals. It’s probably trading much more on the indecision that you’re seeing around the globe.

“It’s really a global-driven financial market at the moment.”

Investors dumped US stocks across the board overnight, pushing the Dow Jones industrial average down more than 1.6 per cent for the session and 10 per cent for the year.

Britain’s share index also sagged, with a sell-off in financial and mining stocks.

Locally, Westpac was the hardest hit of the top four banks falling 73 cents, or 2.54 per cent, at $28.06, while ANZ was down 53 cents, or 2.33 per cent, at $22.18, National Australia Bank fell 46 cents, or 1.86 per cent to $24.14 and Commonwealth Bank dropped 97 cents, or 1.31 per cent, closing at $73.33.

Shares in mining giant Rio Tinto fell by 52 cents to $40.47 after the company said it will scrap its dividend policy, and posted a full year loss.

BHP Billiton lost 15 cents, closing at $15.09.

BlueScope shares hit a one-year high, soaring by 14.16 per cent to $5.00 after it upgraded its half year earnings forecast for the second time in four months.

Telstra also fared better than the overall market, gaining four cents to end the week at $5.57.

Ms Chan said the overall market remained soft and she expected a continued downward trend in the short term until there was stability in overseas markets.

KEY FACTS:

* At the close, the benchmark S&P/ASX200 index was down 55.8 points, or 1.16 per cent, at 4765.3 points.

* The broader All Ordinaries index was down 54.3 points, or 1.11 per cent, at 4816.6 points.

* The March share price index futures contract was 50 points lower at 4717, with 39,972 contracts traded.

*The price of gold in Sydney at 1700 AEDT was $US1,238.62 per fine ounce, up $US32.32 on Thursday’s price of $US1,206.30 per fine ounce.

* National turnover was 2.3 billion securities traded, worth $6.0 billion.