The share market has fallen ahead of a speech by US Federal Reserve chair Janet Yellen that could provide clues on the timing of a hike in US interest rates.
Trading volumes were low ahead of the speech, scheduled to begin at midnight on Friday, Australian time, and the main indices slipped almost 0.5 per cent.
“That tells us that the overriding issue for markets is that speech tonight,” CMC Markets chief market strategist Michael McCarthy said.
“Major investors are sitting on their hands ahead of what could be a market changing event.”
It was surprising to see industrial and property stocks at the bottom of the performance ladder, including Brambles, Sydney Airport and Scentre Group, which suggests a battening down of the hatches, he said.
Company earnings reports on Friday were mixed.
Vacuum retailer Godfreys plunged 21 cents, or 17 per cent, to $1.02 after the company’s annual profit fell 36 per cent amid a significant drop in sales.
Mayne Pharma lifted 6.5 cents to $1.985, as the pharmaceuticals cpmpany predicted significant growth in the year ahead from its recent purchase of a suite of US generic drugs, and said it is looking for more acquisitions.
Beverages giant Coca-Cola Amatil dropped 42 cents to $9.17, as it reported falling demand for carbonated drinks in Australia, and said it was rebalancing its business towards water, energy and dairy drinks.
Monash IVF dropped nine cents to $2.38 despite a 35 per cent rise in annual profit, boosted by its growing Malaysia business and increased share of the Australian assisted reproductive market.
Among the banks, Commonwealth Bank dropped 74 cents to $73.26, National Australia Bank shed 22 cents to $27.46, Westpac retreated 26 cents to $30.10 and ANZ was 18 cents lower at $26.67.
BHP Billiton dropped 15 cents to $20.88, Rio Tinto dipped 28 cents to $48.82 and Fortescue Metals gained five cents to $4.88.
KEY FACTS:
* The benchmark S&P/ASX 200 index dropped 26.4 points, or 0.48 per cent, to 5,515.5 points.
* The broader All Ordinaries index fell 24 points, or 0.43 per cent, to 5,607.4 points.
* The September share price index futures contract was down 27 points at 5,486 points, with 26,166 contracts traded.
* National turnover was 2.8 billion securities traded, worth $6.5 billion.
