The Australian sharemarket ended lower on Wednesday as profit results in the banking and utilities sectors weighed on sentiment.
The S&P/ASX 200 index dropped 53.70 points or 0.60% to end at 8,827.10 despite six of the 11 sectors finishing higher.
The index opened at 8,880.8 points, rising briefly to 8,890.5 before dropping to a low of 8,815.3 just before midday and gaining ground only marginally over the balance of the session.
The utilities sector led the market down with a 2.93% drop, dragged lower by AGL Energy (ASX: AGL) which finished $1.34 (13.1%) off at $8.88 after announcing weaker full year earnings.
Financials ended 2.45% lower as the major banks sank in price, headed by Australia’s largest company Commonwealth Bank of Australia (ASX: CBA), which shed $9.68 or 5.41% to $169.12, despite announcing a 4% lift in full year cash profit.
Bucking the trend was Treasury Wine Estates (ASX: TWE) which ended nine cents (1.18%) firmer at $7.72 after posting an increase in full year earnings, but IAG went the other way, easing just one cent (0.12%) to $8.49 despite lifting profits.
The ASX had been expected to open higher on the basis of futures trading and a stronger close on Wall Street overnight where two of the three major indices ended in record territory after inflation data raised expectations of lower interest rates but the reportint season took its toll.
The Dow Jones Industrial Average rose 1.10%, the S&P 500 added 1.13% and the Nasdaq put on 1.39% on Tuesday (Wednesday AEST) after the Labor Department's Bureau of Labor Statistics said the consumer price index (CPI) rose 0.2% in July.
The Australian dollar closed 0.26% higher at US$0.65455 at 5.10pm AEST (7.10am GMT).
In the fixed interest market, yields closed lower with 10-year Australian Government bonds dropping 0.61% to 4.229% and two year bonds dropping 0.75% to 3.310%.