The share market has fallen for a second straight session in the wake of uncertainties surrounding the immigration policies of US President Donald Trump, while news from fertility clinic operator Virtus Health and education provider Navitas disappointed.
OptionsXpress market analyst Ben Le Brun said investors weren’t in the mood to take risks, and were taking profits.
“There’s a little bit of concern emanating out of the US, which has seen a retreat in global equities, and that’s hit some of the cyclical sectors, in a particular the materials and the energy sector today,” he said.
“All eyes and ears are peeled again tonight to see what President Trump says and does – it’s just causing some concern at the moment.”
Mr Le Brun said investors were concerned about the implications for US economic growth emanating from President Trump’s temporary halt to the US refugee program and ban on all entries from seven Muslim-majority nations for 90 days.
Weak trading updates from Virtus Health and Navitas did not make for an auspicious start to company earnings season, he added.
“A few profit warnings here and there have maybe wrong-footed the market,” Mr Le Brun said.
Virtus Health plummeted by $1.10, or 17.7 per cent, to $5.11 after it said slower markets and tough competition had contributed to a seven per cent fall in new IVF business in the first half of the financial year.
Navitas dropped 29 cents, or 6.1 per cent, to $4.43 as it reported a stronger half year profit but a fall in revenue and earnings, and paid a lower dividend.
BHP Billiton and Rio Tinto fell, but iron ore miner Fortescue Metals was one of the better performers after delivering another strong quarter of production and signalled a rise in dividends.
The energy sector and big four banks fell.
The Australian dollar was stronger at 75.63 US cents at 1700 AEDT, but moving within a narrow range.
ON THE ASX:
* The benchmark S&P/ASX200 was down 40.6 points, or 0.72 per cent, at 5,620.9 points.
* The broader All Ordinaries index was down 39.3 points, or 0.69 per cent, at 5,675 points.
* The March SPI200 futures contract was down 48 points at 5,555 points, with 35,644 contracts traded.
* National turnover was 3.06 billion securities traded worth $5.9 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 75.63 US cents, from 75.49 US cents on Monday
* 85.83 Japanese yen, from 86.50 yen
* 70.68 euro cents, from 70.39 euro cents
* 60.44 British pence, from 60.06 pence
* 103.69 New Zealand cents, from 104.02 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,201.20 per fine ounce, up $US8.50 from $US1,192.70 on Monday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.78pct, from 1.811pct
* CGS 4.25pct April 2026, 2.646pct, from 2.664pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.225 (implying a yield of 2.775pct), from 97.240 (implying a yield of 2.760pct) on Monday
* March 2017 3-year bond futures contract at 98.07 (1.93pct), from 98.03 (1.97pct).
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
