The share market has closed lower for a fourth consecutive session on the back of sliding commodity prices with an iron ore slump weighing on the local currency.
Iron ore fell by more than six per cent to $US63.40 a tonne overnight after a slump in Chinese iron ore futures on Thursday.
Ongoing falls in iron ore futures on Friday drove the Australian dollar lower, taking it to an intra-day low of 73.68 US cents.
Base metals prices also fell overnight with copper suffering its biggest two-day drop since July 2015.
“Commodity prices are under pressure, which will see the Aussie dollar continue to sell off but at the same time it could represent some buying opportunities ,” EasyMarkets currency dealer Paul Clifford said.
Patersons Securities economist Tony Farnham said the falls in the miners and energy companies were the biggest trigger behind the share market’s decline.
“Crude oil prices fell substantially overnight and that prompted a selloff in Woodside and the other energy players, while the materials were quite a bit lower on the back of a fall in the base metals and iron ore,” he said.
On the ASX, global miners BHP Billiton and Rio Tinto fell 2.7 per cent to $22.62 and 2 per cent to $57.15, respectively.
Shares in Woodside Petroleum and Santos dropped 2.7 per cent $31.59 and 3 per cent to $3.53, respectively, after oil plunged to five-month lows as producers appeared to rule out deeper supply cuts to reduce a glut of crude.
The financial stocks finished lower with all big four banks losing ground.
However, shares in Macquarie Group jumped 3.23 per cent, or $2.97, to $94.89 after the investment bank’s full-year profit rose 7.5 per cent to $2.217 billion, surpassing market expectations.
The other big ASX gainers were Telstra, which rose 4.02 per cent to $4.40 following news it won’t have to share its regional mobile network with smaller rivals, and Qantas, which gained 2.3 per cent to $4.52 following a positive trading update on Thursday evening.
ON THE ASX:
* The benchmark S&P/ASX200 was down 39.8 points, or 0.68 per cent, at 5,836.6 points.
* The broader All Ordinaries index was down 40.7 points, or 0.69 per cent, at 5,863.8 points.
* The June SPI200 futures contract was down 52 points, or 0.89 per cent, at 5,812 points.
* National turnover was 2.58 billion securities traded worth $7.4 billion.
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 73.86 US cents, from 74.03 US cents on Thursday
* 82.89 Japanese yen, from 83.43 yen
* 67.33 euro cents, from 68.03 euro cents
* 57.08 British pence, from 57.61 pence
* 107.93 New Zealand cents, from 107.85 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEST was $US1,231.80 per fine ounce, down $US3.60 from $US1,235.40 on Thursday.
BOND SNAPSHOT AT 1630 AEST:
* CGS 5.25 per cent March 2019, 1.7153pct, from 1.7138pct on Thursday
* CGS 4.25pct April 2026, 2.592pct, from 2.5844pct
Sydney Futures Exchange prices:
* June 2017 10-year bond futures contract at 98.1 (implying a yield of 1.9pct), from 97.33 (2.67pct) on Thursday
* June 2017 3-year bond futures contract at 97.32 (2.68pct), from 98.10 (1.90pct).
