The share market has fallen for a third straight session as the big banks continue to slide.
CMC Markets chief market strategist Michael McCarthy said it was another tough day at the office for investors, with the benchmark S&P/ASX200 down 0.3 per cent to 5,876 points.
“A lot of the pressure we’ve seen this week has to do with the failure of the market on Monday just below that 6,000 level,” he said.
“Failure at that level has become a signal for investors to lock in their gains.”
Mr McCarthy said the big four banks were under pressure because of the spectacular gains they have made in the last six months, and nervousness was prompting investors to re-evaluate their value.
Weakness in industrial commodities was also weighing on the resources sector, he said.
The Australian dollar also dropped, hitting a near four-month low as the US Federal Reserve’s positive view of the US economy boosted expectations of rate hikes, and the US dollar.
The local currency was at 74.03 US cents at 1700 AEST, down from 74.89 US cents on Wednesday
Among the big four banks, ANZ dropped 1.7 per cent, Commonwealth Bank shed 0.8 per cent and Westpac lost 1.2 per cent.
National Australia Bank was 0.5 per cent weaker at the close of trade, after trading in positive territory for most of the session as it reported a rise in half year profit to $3.29 billion.
Mr McCarthy said the NAB result was mixed, with investors concerned about a contraction in net interest margins and increases in bad and doubtful debts.
BHP Billiton gained 0.1 per cent but Rio Tinto dropped 1.8 per cent and Fortescue Metals was 4.8 per cent lower.
Energy stocks rose after oil prices edged higher because US government data suggested that a glut of crude oil may be receding.
Caltex Australia gained 2.2 per cent after receiving regulatory approval for its takeover of Victorian fuel retailer Milemaker Petroleum, while Fairfax Media lifted 1.4 per cent despite revenue from its news operations falling 11 per cent since Christmas.
ON THE ASX AT 1630 AEST:
* The benchmark S&P/ASX200 was down 15.9 points, or 0.27 per cent, at 5,876.4 points.
* The broader All Ordinaries index was down 15.4 points, or 0.26 per cent, at 5,904.5 points.
* The June SPI200 futures contract was down 14 points, or 0.24 per cent, at 5,863 points.
* National turnover was 2.5 billion securities traded worth $6.8 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 74.03 US cents, from 74.89 US cents on Wednesday
* 83.432 Japanese yen, from 83.92 yen
* 68.03 euro cents, from 68.57 euro cents
* 57.61 British pence, from 57.98 pence
* 107.85 New Zealand cents, from 107.87 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,235.40 per fine ounce, down $US19.50 from $US1,254.90 on Wednesday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.7138pct, up from 1.668pct on Wednesday
* CGS 4.25pct April 2026, 2.5844pct, up from 2.533pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 97.325 (implying a yield of 2.675pct), down from 97.380 (2.620) on Wednesday
* June 2017 3-year bond futures contract at 98.100 (1.900pct), down from 98.150 (1.850pct).
(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)
