Australian share market finished 2% lower today, pulled down by banking stocks as next week’s Reserve Bank meeting looms closer with the possibility of an interest rate rise.
The benchmark S&P/ASX 200 Index shed 116 points to 5651.20, while the All Ordinaries fell 96.40 to 5746.10.
On the Sydney Futures Exchange, the March share price index futures contract was down 104 at 5644.
The financials backtracked on their gains from the last couple of days, pulling the market down with them.
The four big banks all ending in the red, with Commonwealth Bank losing $2.30 to $44.05, ANZ losing 85 cents to $22.70, Westpac falling 74 cents to $23.81 and National Australia Bank shedding $1.36 to $29.97.
The flat results on Wall Street overnight did not help the market, with the Dow Jones Industrial Average gaining 9.36 points or 0.07% to 12,694.28.
Construction company Lend Lease posted a 49% increase in half year profit, but admitted it faced increasing headwinds from the slowing US economy, credit squeeze and soft UK property market. Shares in LLC fell 28 cents to $14.42.
Gas and electricity retailer, Origin Energy said its underlying profit fell slightly, but it expects a stronger second half. Shares jumped 63 cents or 7.9% to $8.55.
Shares in Suncorp-Metway slumped 7.6% to $14.34 after it reported a 27.5% fall in first half profit due to increased payouts from bad weather and the fallout from the global credit crisis.
Australian gaming company Tatts Group, formerly known as Tattersalls, announced today that its first half net profit rose 23.5% to $133.02 million, boosted by an acquisition, but its gaming revenues performed poorly due to the outbreak of horse flu. Shares in TTS slid 22 cents to $3.88.
Retail stocks were mixed with David Jones falling 9 cents to $4.19, while Harvey Norman added 2 cents to $4.95.
Coles owner Wesfarmers shed $1.90 cents to $38.60 and Woolworth finished 11 cents down at $29.90.
In New York, spot gold rose as high as $US964.70 an ounce and was at $US957.50/958.30 at last quote at 19.15 GMT, against $US946.60/947.40 late on Tuesday.
