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Banks, miners lead share market lower

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The share market has closed lower after falls by the banks and miners offset gains from healthcare, retail and energy companies.

The benchmark S&P ASX200 index dropped 0.2 per cent as a sell-off among the major banks in afternoon trade tipped a modestly higher market into the red.

Phillip Capital senior client adviser Michael Heffernan said the release of estimates from the big four banks of the financial impact of the federal government's new levy renewed concerns among investors.

"The war going on with the federal government and the banks' view on how much the tax is going to cost them has not helped," he said.

"As for the miners, they had a good day on Monday and now they're oscillating and until there's a sustained rise in iron ore and oil prices, the major resource stocks are going to wax and wane."

Westpac dropped one per cent, National Australia Bank gave up 0.8 per cent, Commonwealth Bank shed 0.4 per cent and ANZ was 0.3 per cent lower.

Macquarie Group, the fifth largest bank that the levy will also apply to, dropped 0.5 per cent to $88.18.

BHP Billiton shed 1.2 per cent, Rio Tinto declined 0.7 per cent and Fortescue Metals was 2.05 per cent weaker.

Major energy producers were higher with Woodside Petroleum, Santos and Oil Search all up 0.6 per cent.

Consumer-related and healthcare stocks were among the best performers, with Domino's Pizza up 1.6 per cent at $61.98 and Crown Resorts 1.4 per cent stronger at $12.85, while CSL gained 0.6 per cent at $131.10 and Cochlear was up 0.6 per cent to $142.90.

The Australian dollar briefly rose above 75 cents in afternoon trade, and was trading at 74.94 US cents at 1700 AEST.

ON THE ASX:

* The benchmark S&P/ASX200 dropped 11 points, or 0.19 per cent, to 5,760.2 points.

* The broader All Ordinaries index dropped 8.4 points, or 0.14 per cent, to 5,802.8 points.

* The June SPI200 futures contract was down 13 points, or 0.22 per cent, at 5,769 points.

* National turnover was 2.1 billion securities traded worth $5 billion.

CURRENCY SNAPSHOT AT 1700 AEST:

One Australian dollar buys:

* 74.94 US cents, from 74.45 US cents on Monday

* 83.19 Japanese yen, from 82.92 yen

* 66.75 euro cents, from 66.61 euro cents

* 57.81 British pence, from 57.30 pence

* 106.63 New Zealand cents, from 107.38 NZ cents

GOLD:

The spot price of gold in Sydney at 1700 AEST was $US1,261.20 per fine ounce, up $US6.94 from $US1,254.26 on Monday.

BOND SNAPSHOT AT 1630 AEST:

* CGS 4.50 per cent April 2020, 1.699pct, from 1.726pct on Monday

* CGS 4.75pct April 2027, 2.4464pct, from 2.486pct

Sydney Futures Exchange prices:

* June 2017 10-year bond futures contract at 97.525 (implying a yield of 2.475pct), from 97.48 (2.52pct) on Monday

* June 2017 3-year bond futures contract at 98.25 (1.75pct), from 98.23 (1.77pct)

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Published on: Tuesday, May 23, 2017

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