Banks, miners pull down market

THE sharemarket has closed moderately lower due to falls by the big banks and miners on a day with little news to influence investors.

“It’s a weak day. All sectors are down, with the exception of the REITs (real estate investment trusts),” IG chief market strategist Chris Weston said. “There’s something going on in the market, but there’s no real major rhyme or reason as to why we’re down.

“In a market like Australia, if a big institutional pension fund sells down stock and it’s broadbased, it’s going to move the market.”

Stronger-than-expected Chinese trade data for August, and a narrower trade deficit for Australia, may have lifted the market in afternoon trade, though neither piece of news was sufficient to lift the market out of the red, Mr Weston said.

Imports into China rose for the first time in about two years, while a slump in exports eased. Australia’s trade deficit, meanwhile, fell from $3.2 billion in June to $2.4 billion in July, due mainly to a rise in gold exports.

Among the banks, Commonwealth fell 50¢ to $72.06, National Australia Bank lost 13¢ to $27.67, ANZ dropped 30¢ to $27.08 and Westpac was 4¢ weaker at $30.03.

BHP Billiton dropped 24¢ to $20.26, Rio Tinto slipped 14¢ to $48.02 and Fortescue Metals dumped 10¢ to $4.89.

Supermarket giant Woolworths shed 85¢ to $23.27 as it traded ex-dividend.