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Big banks drag share market lower

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Falls by the big four banks have pulled the share market lower, as uncertainty about the policies of US president-elect Donald Trump influences trade.

The market mirrored Wall Street’s overnight session, where financial and healthcare stocks lost ground amid concerns about the prospects for growth for the financial sector and worries about Mr Trump’s economic policies, OptionsXpress market analyst Ben Le Brun said.

The pullback in financial stocks is not surprising given their huge rise since Donald Trump’s election victory in November, he said.

A broker upgrade on oil and gas producer Woodside Petroleum, and an upgrade by Wesfarmers of its its coal forecasts, had lent some support to the local market, Mr Le Brun said.

“There’s a little bit of uncertainty creeping into the market overall,” he said.

“There is that Donald Trump uncertainty factor at the moment. Our market seems to be prepared to lock in a few profits ahead of the inauguration.”

The Australian dollar rose to a two-month high as comments from Mr Trump about a strong US dollar hurting the competitiveness of US companies dented the greenback.

Among the major banks, Westpac dropped one per cent to $32.43, ANZ retreated 0.95 per cent to $30.11, Commonwealth Bank shed 0.8 per cent to $82.66 and National Australia Bank fell 0.7 per cent to $30.58.

Insurer Suncorp descended 0.7 per cent to $13.43, IAG sagged 0.8 per cent to $6.03 and QBE was 0.8 per cent weaker at $12.20.

In healthcare, ResMed dropped three per cent to $8.37 and Ramsay Health Care was 1.7 per cent weaker at $68.95.

BHP Billiton eased 0.7 per cent to $26.52 and Rio Tinto gained 0.7 per cent to $63.14, while Woodside rose 1.2 per cent to $32.38.

Wesfarmers rose 0.2 per cent to $41.60 after upgrading the half year earnings outlook for its coal mining business.

ON THE ASX:

* The benchmark S&P/ASX200 dropped 20.6 points, or 0.36 per cent, to 5,678.8 points.

* The broader All Ordinaries index fell 21 points, or 0.36 per cent, to 5,733.7points.

* The March SPI200 futures contract was down 22 points at 5,629 points, with 31.549 contracts traded.

* National turnover was 2.5 billion securities traded worth $5 billion.

CURRENCY SNAPSHOT AT 1700 AEDT:

One Australian dollar buys:

* 75.44 US cents, up from 75.24 cents on Tuesday

* 85.48 Japanese yen, from 85.35 yen

* 70.61 euro cents, from 70.63 euro cents

* 61.16 British pence, from 62.14 pence

* 104.91 New Zealand cents, from 105.19 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEDT was $US1,212.00 per fine ounce, up 10 US cents from $US1,211.90 on Tuesday.

BOND SNAPSHOT AT 1630 AEDT:

* CGS 5.25 per cent March 2019, 1.8467pct, down from 1.855pct on Tuesday.

* CGS 4.25pct April 2026, 2.6258pct, down from 2.641pct.

Sydney Futures Exchange prices:

* March 2017 10-year bond futures contract at 97.28 (implying a yield of 2.72 pct), up from 97.27 (2.73pct) on Tuesday.

* March 2017 3-year bond futures contract was unchanged at 98.0 (2.0pct).

(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)

SOURCE: IRESS