The Australian sharemarket is lower as three major companies trade ex-dividend and national economic growth figures missed expectations.
Australia’s economy grew by 0.5 per cent in the December quarter and by 2.5 per cent in 2014, official figures show, which was slightly worse than market expectations.
Options XPress market analyst Ben LeBrun said the gross domestic product figures and three big companies, Rio Tinto, QBE and ASX, trading ex-dividend had pushed the local bourse lower.
“That’s knocked a bit of the wind out of the sails of the local market,” Mr LeBrun said.
He predicts the ASX200 will not fall further below 5900 points in afternoon trade.
“For the rest of the session, it should be steady as she goes,” he said.
The big miners suffered the greatest falls after an overnight drop in the iron ore price and Rio Tinto going ex-dividend.
Rio Tinto dived $2.24 to $62.56, BHP Billiton dropped 33 cents to $33.21 and Fortescue Metals fell 11 cents to $2.31.
Oil and gas producer Woodside Petroleum was seven cents higher at $35.15, while Santos gained nine cents to $8.03.
Among the major banks, Commonwealth Bank was down 73 cents at $91.19, National Australia Bank was 25 cents lower at $38.04, ANZ lost seven cents to $35.59, and Westpac dropped 24 cents to $38.02.
Insurance Australia Group rose four cents to $5.80, despite announcing it’s facing claims of up to $90 million as a result of devastation caused by Cyclone Marcia in Queensland.
FlexiGroup shares jumped 15 cents to $3.65, after the financial services provider snapped up New Zealand’s IT and telco equipment provider Telecom Rentals for $NZ106 million ($A102.34 million).
KEY FACTS
* At 1200 AEDT on Wednesday, the benchmark S&P/ASX200 index was 30 points, or 0.52 per cent, lower at 5,902.2.
* The broader All Ordinaries index was down 28.7 points, or 0.50 per cent, at 5,874.2.
* The March share price index futures contract was 34 points lower at 5,889 with 11,426 contracts traded.
* National turnover was 1.6 billion securities worth $357 million.
