The share market has ended the week with a fall, hurt by financial and resources stocks amid concerns about Deutsche Bank’s future and the possible implications of its financial woes.
The benchmark S&P/ASX 200 index fell by 0.65 per cent, a day after hitting a one month high on the back of OPEC’s surprise decision to cut oil production.
Ten of the 12 market subsectors lost ground following falls on Wall Street and Germany’s market.
Deutsche Bank’s US shares were heavily sold off on media reports that some hedge funds had cut their financial exposure to Germany’s largest lender.
Morgans senior private clients adviser Bill Chatterton said the local banks have been caught up in the financial sector sell-off.
“Our banks aren’t about to fall over but the reality is you get caught up in the negativity,” Mr Chatterton said.
Macquarie Group led the financial sector lower, dropping $1.34 to $81.94.
Commonwealth Bank shed $1.10 to $72.40, Westpac lost 41 cents to $29.51, National Australia Bank fell 27 cents to $27.87 and ANZ slipped 19 cents to $27.63.
Rio Tinto and BHP Billiton also came under pressure, falling 24 cents to $51.61 and two cents to $22.38, respectively.
Bucking the broader market were energy companies, as oil prices continued to rise on the back of OPEC’s decision and market expectations of more cuts to oil production, Mr Chatterton said.
Woodside rose 17 cents to $28.62, Oil Search gained nine cents to $7.09 and Origin Energy added six cents to $5.42.
Southern Cross Media shares fell 22 cents, or 13 per cent, to $1.46 after Nine Entertainment sold its 9.99 per cent stake in radio and regional television company.
Nine shares rose eight cents to $1.05.
Caltex rose 14 cents to $34.25 on market expectations that it could buy Woolworths’ 530 petrol stations for between $1.2 to $1.5 billion.
Woolworths was six cents lower at $23.27.
KEY FACTS:
* The benchmark S&P/ASX 200 index dropped 35.4 points, or 0.65 per cent, to 5,435.9 points.
* The broader All Ordinaries index fell 33.1 points, or 0.6 per cent, to ,525.1 points.
* The December share price index futures contract was down 47 points at 5,416 points, with 30,399 contracts traded.
* National turnover was 3 billion securities traded, worth $7 billion.
