Stock slide typifies year

Pessimism ‘has sucked liquidity out of markets’

A LATE dive amid light volumes has seen the Australian share market finish lower on the last day of the year, confirming 2018 as the worst 12 months for the bourse since 2011.

The S&P/ASX200 index closed down 7.9 points, or 0.14 per cent, at 5645.0 at an earlier-than-usual close of 2.10pm AEDT yesterday.

The market had been ahead as 33.6 points, at 5693.6, as late as 1.10pm AEDT.

Meanwhile, the broader All Ordinaries closed 6.6 points, or 0.12 per cent, lower at 5715.0, having also been higher throughout the day.

The ASX has slipped 9.04 per cent since September – the worst quarter since September 2011 – with the benchmark also enduring its worst year in seven, down 6.9 per cent amid wider global volatility.

Pepperstone head of research Chris Weston said a flat end to the year was to be expected given lower volumes at play.

“As you’d expect on a day like today, we’re 46 per cent below the 30-day average,” he said.

“The index has been shrugging along... we’ve seen it dip late, whether that’s people paring back some risk going into the final session, or it could be delayed reaction to poor China manufacturing data.”

Mr Weston said fears over global growth and manufacturing loomed as one of the major concerns heading into 2019.

“Liquidity had been sucked out of markets because of downright pessimism,” he said.

“At the heart of it is US and Sino relations – Donald Trump (left) would be rubbing his hands together at (China manufacturing data) because he’s got some leverage now.”

The big Australian banks and miners held on to earlier gains but property stocks, industrials and consumer staples weighed on the market as the final session for 2018 came to a close.

Rio Tinto finished up 0.5 per cent to $78.47 and BHP climbed 0.82 per cent higher to $34.23, while Fortescue Metals gained 1.21 per cent after naming the preferred contractor for the $57 million stage one earthworks for its Eliwana Rail Project.

Gold miner Newcrest rose 3.46 per cent to $21.80 on a near six-month peak for the precious metal.

Northern Star was unchanged after fellow miners Rand and Tribune rejected its $150 million offer for their 49 per cent stake in a WA gold project.

Commonwealth Bank was the best performer of the big lenders at $72.39.