The share market has closed lower as investors took profits, especially in the mining sector and among major oil stocks, and a disappointing earnings report from Suncorp weighed on insurance stocks.
The benchmark S&P/ASX200 index fell 0.16 per cent to 5,735.1 points.
A recent rally in metals prices had stalled, prompting investors to take profits on mining stocks, CMC Markets chief market analyst Ric Spooner said.
“We’ve seen a bit of weakness, a bit of profit-taking, in the resources sector,” Mr Spooner said.
“The second thing is that there was a moderately negative response to Rio Tinto’s profit result, based on the fact that the result was slightly below the average market estimates.”
Mining giant Rio Tinto lost $1.64, or 2.5 per cent, to $64.20 a day after posting a 93 per cent rise in half year profit and launching a $US1 billion buyback of its London-listed shares.
BHP Billiton lost 0.4 per cent and Fortescue Mining dropped 1.3 per cent.
Oil and gas producer Woodside Petroleum surrendered 1.2 per cent, Oil Search was steady, and Santos gained 0.59 per cent.
Suncorp lost 93 cents, or 6.4 per cent, to $13.57 after the banking and insurance firm’s annual profit rose four per cent to $1.08 billion – weaker growth than investors had expected.
Rival insurer IAG dropped 1.8 per cent and QBE was 0.6 per cent lower.
Three of the big four banks took modest falls, including a drop of 0.3 per cent for Commonwealth Bank, which is facing civil penalties for allegedly failing to comply with anti-money laundering and counter-terrorism financing laws.
The Australian dollar remains above 79 US cents but has been weakening against other major currencies as traders became more wary of the Aussie near the 80 US cent mark.
AxiTrader strategist Greg McKenna said traders also believed that the Reserve Bank of Australia may keep interest rates on hold for a while, and other central banks may soon move higher, which made major currencies other than the Aussie more attractive.
ON THE ASX:
* The benchmark S&P/ASX200 was down 9.1 points, or 0.16 per cent, at 5,735.1 points.
* The broader All Ordinaries index was down 7.7 points, or 0.13 per cent, at 5,786.8 points.
* The September SPI200 futures contract was down 17 points or 0.3 per cent at 5, 664 points.
* National turnover was 2.5 billion securities traded worth $5 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 79.28 US cents, from 79.71 US cents on Wednesday
* 87.69 Japanese yen, from 88.19 yen
* 66.89 euro cents, from 67.33 euro cents
* 59.91 British pence, from 60.31 pence
* 107.13 NZ cents, from 107.12 NZ cents
GOLD:
The spot price of gold in Sydney at 0700 AEST was $US1,261.96 per fine ounce, down from $US1,267.08 per fine ounce on Wednesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 4.50 per cent April 2020, 1.8484pct, from 1.8675pct on Wednesday
* CGS 4.75pct April 2027, 2.6148pct, from 2.6505pct
Sydney Futures Exchange prices:
* September 2017 10-year bond futures contract at 97.335 (implying a yield of 2.665pct), from 97.295 (2.705pct) on Wednesday
* September 2017 3-year bond futures contract at 98.06 (1.94pct), from 98.03 (1.97pct).
(*Bond market closes taken at 1630 AEST previous local session, currency levels taken at 1700 AEST previous local session)
