The Australian share market has finished slightly lower as global growth worries kept buyers at bay after a seven day winning streak.
Disappointing US inflation figures contributed to a weaker finish on Wall Street and softer commodity prices have affected the nation’s big miners.
Morgans client adviser Luke McElwaine said the big banks had rallied on the prospect of good dividends, while resources companies remained under pressure.
“ANZ, NAB and Westpac are performing after being oversold, going into a dividend,” Mr McElwaine said.
“They’re the big movers in the market and everything else is looking pretty much down.”
He said some foreign investors were sitting on the sidelines until the Australian dollar showed some direction.
“The reason the market is ebbing and flowing is there’s probably two schools of thought on where the Aussie dollar’s going,” he said.
Australia’s big mining companies suffered the biggest losses, with BHP Billiton 63 cents, or 1.8 per cent weaker, at $33.64, as Rio Tinto shed $1.34, or 2.2 per cent, to $59.87 and Fortescue Metals lost 13 cents to $3.53.
But the banks all finished in positive territory, with the Commonwealth Bank adding 60 cents to $78.17, Westpac gaining 28 cents to $34.02, National Australia Bank adding 19 cents to $34.04 and ANZ adding five cents to $32.93.
Troubled mining services firm Boart Longyear added eight cents, or 53 per cent, to 23 cents after securing a complex recapitalisation deal with US private group Centerbridge.
Oil Search lost 12 cents, or 1.38 per cent, to $8.60, despite its promise to increase dividend payments to shareholders after lifting production 81 per cent during the September quarter.
Toll Holdings dropped 7.1 per cent to $5.47 after the release of its annual report.
KEY FACTS
* At the close on Thursday, the benchmark S&P/ASX200 index was 2.8 points, or 0.05 per cent, lower at 5,383.1 points, according to preliminary figures.
* The broader All Ordinaries index was down 3.4 points, or 0.06 per cent, at 5,369.9.
* The December share price index futures contract was seven points lower at 5,370, with 24,913 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1244.10 per fine ounce, down $4.20 on Wednesday’s closing price of $US1,248.30.
* National turnover was 1.6 billion securities worth $3.8 billion.
