Some heavy losses in the banking sector saw the Australian share market record its second consecutive weekly loss as the prospect of no further interest rate falls began to sink in.
With the Reserve Bank deciding to hold the cash rate steady during the week the ASX 200 index dropped 58.6 points, or 0.7% on Friday to 8769.7 points.
It was an uneven and concentrated fall with six out of the 11 sectors remaining in positive territory but the index still fell 1% for the week.
Macquarie disappoints
Much of the damage was in the financial sector with Macquarie (ASX: MQG) falling a hefty 5.7% to $204.77 as the market digested the bank’s disappointing $1.7 billion September half-year profit.
That result missed analyst forecasts by 10.4% and didn’t help the share prices for the rest of the banking sector.
Sector leader Commonwealth Bank (ASX: CBA) saw its shares fall 1.5% to $175.91 as it followed Macquarie lower but National Australia Bank (ASX: NAB) rebounded 0.9% to $43.44.
Shares in ANZ (ASX: ANZ) also fell 0.5% to $36.80.
Tech leads the rout
Technology shares also played a big part in the falling market after falling hard in the US, with Sydney based but Nasdaq listed Iren falling a hefty 12%.
WiseTech Global (ASX: WTC) fell 2.7% to $66.17, Life360 (ASX: 360) fell 3.6% to $46.64 and Xero (ASX: XRO) fell 2.5% to $141.74.
It was more of a mixed bag for the mining sector with the gold sector rallying on renewed strength in the gold price, which rose closer to the US$4000 an ounce mark.
Newmont (ASX: NEM) were typical of the gold sector, up 1.8% to $128.
It was a different experience for the big iron ore miners with BHP (ASX: BHP) down 0.8% to $42.65 while shares in Rio Tinto (ASX: RIO) and Fortescue (ASX: FMG) were hit even harder, down 1.3% and 1.5% respectively as the iron ore price dropped 1.2% to $US102.65 a tonne.
Aviation hits turbulence
There was no good news for shareholders in Alliance Aviation (ASX: AQZ) with the shares down 42.7% to $1.45 after exiting a voluntary suspension.
The aviation services provider started to trade again after warning that current financial year results would fall well short of investor and analyst expectations courtesy of higher aircraft, engine and maintenance costs.
Founding managing director Scott McMillan has also stepped down from the board.
Shares in Alliance backer Qantas (ASX: QAN) also dropped by 6.6% to $9.51 after it foreshadowed first-half domestic unit revenue would be at the low end of guidance at about 3% as corporate demand for flights is growing slowed than the leisure market.
Shares in media company News Corp (ASX: NWS) jumped 3% to $46.35 after revenue in the September quarter came on stronger than expected at $US2.14 billion ($3.31 billion).
The result was helped by a strong performance from Dow Jones and real estate services which more than made up for offsetting sluggish advertising in its Australian print products.
The market continued to be tough on companies that disappointed, with shares in Afterpay owner Block (ASX: XYZ) falling 15.8% to $95.12 after the fintech’s third quarter showed revenue of $US6.11 billion compared to expectations of $US6.34 billion.
The week ahead
There is no shortage of news due in the coming week which might have market ramifications.
Locally, the week starts with a speech from Reserve Bank deputy governor Hauser with deputy governors Brad Jones and Michelle McPhee both giving speeches later in the week.
Rounding out the week are figures on consumer confidence, household spending, lending and the labour force.
There are plenty of overseas announcements too with Chinese consumer and producer prices, retail sales, production and investment.
A swag of US figures will also be released, including employment, inflation, retail sales and small business.
Politics will also figure in the equation, with the US Government shutdown continuing and starting to inflict damage on parts of the US economy.
