ASX ends day lower as major banks tumble due to cautious property outlook

ASX ends day lower as major banks tumble due to cautious property outlook

A cautious outlook for the property market has caused the Australian sharemarket to slip, with major banking shares taking a tumble.

The S&P/ASX 200 index closed the session down 4.7 points, or 0.1 per cent, to 5894.8, driven by stock falls in the financial and energy sectors.

However, the broader All Ordinaries index ended the day up 0.8 points, or 0.01 per cent, to 6049.

Minutes from the Reserve Bank’s meeting on monetary policy caused the Australian dollar to end the local session up 0.5 per cent to 73.26 US cents, with the central bank saying the currency is trading within expectations.

“The appreciation of the Australian dollar had been consistent with the increase in commodity prices, particularly iron ore prices, over recent months,” the RBA said.

The central bank did note a lower dollar would provide more assistance to the Australian export market and be better for the economy’s recovery overall.

Silver Lake Resources experienced the biggest gain for Tuesday’s trading day, with its stock rising 8.2 per cent to $2.50 each.

New Zealand gaming group, Sky City Entertainment incurred the largest daily slump, falling 5 per cent to $2.65 per share.

All four of Australia’s major bank’s ended the session lower as grim outlooks on property prices, loan growth and increased bad debts dented confidence.

Commonwealth Bank shares fell 1.7 per cent to $65.03 each, while Westpac dipped lower by 1.5 per cent to $16.72 per share.

NAB ended the day 1.4 per cent lower to $17.16 per share and ANZ shares fell 1.9 per cent to $17.35 each at the close.

Rio Tinto stock fell 1.5 per cent to $102.13 per share, while its mining rival BHP rose 0.7 per cent to $37.49 per share after the release of its 2020 annual report.

Qantas shares remained unchanged at $3.94 and Telstra shares fell 2.1 per cent to $2.82 each.

Resuming vaccine trials assisted an uplift for biomedical company CSL, with its stock ending the session up 1.5 per cent to $287.24 per share.

Wesfarmers finished the day up 0.2 per cent to $45.01 per share, while Woolworths dipped 0.4 per cent lower to $36.34 per share.