Shares market turns negative

THE Australian share market has closed lower, with all sectors except energy in negative territory, with a lift in world oil prices keeping energy stocks just in the black.

The benchmark ASX200 stock index was down 0.65 per cent at 5684.5 points with heavy losses coming from the healthcare, utilities and consumer discretionary sectors.

CommSec market analyst Steven Daghlian said Friday’s broad based sell-off – which took $30 billion off the value of Australian shares as the market dropped 1.7 per cent – had continued into the first day of the new financial year.

“This is partly due to an absence of any catalyst for the market to be positive,” he said.

“Another driver is because we fell back below 5700 points which is an important support level.”

Mixed local data failed to give the market any direction while investors wait for key events, including today’s Reserve Bank of Australia’s cash rate decision and latest retail spending data, Mr Daghlian said.

The RBA is widely expected to keep rates on hold at a record low of 1.5 per cent.

The Australian dollar was trading slightly lower at US76.70¢ late in the day yesterday, compared to US 76.78 ¢ on Friday.