The Australian share market closed virtually flat on Wednesday as earlier gains were given up in the afternoon, with most sectors finishing in the green as traders waited for the U.S. Federal Reserve to make its next move on interest rates.
The S&P/ASX 200 index ended at 8,309.4 points, down just 4.6 or (0.06%) from the previous close, after trading in a 46 point range.
Eight of the 11 sectors finished higher, led by industrials (up 0.82%), but an 0.4% decline by financials dragged the performance on the day almost back to square.
Three of the Big Four banks, Commonwealth Bank (ASX: CBA), National Australia Bank (ASX: NAB) and ANZ Group (ASX: ANZ) led the financials lower as their shares lost 1%, 0.5%, and 0.2%, respectively. The fourth, Westpac, defied the trend, up 0.6%.
The Australian Securities and Investments Commission (ASIC) earlier declined to comment on reports it is investing ANZ for allegedly applying fees to the accounts of dead customers.
Opening at 8,314, the benchmark index rose to a day’s peak of 8,342.90 around the middle of the day before being sold off to 8,296.5 in the early afternoon and then pushing back up to the close.
Financial services group Insignia Financial (ASX: IFL) dropped 15 cents to end 4.2% lower at $3.45 after it rejected a $4 per share cash takeover bid from private equity giant Bain Capital.
Investors await the Federal Reserve Bank’s decision on Wednesday (Thursday AEDT) on interest rates, with the consensus expectation being a 25 basis points reduction, and its comments on the likely future direction of monetary policy.
On the bond markets, at 4:50pm (AEDT) 10-year and 2-year Australian Government yields rates were 0.4% and 0.5% lower at 4.286% and 3.880% respectively.