Aust shares face natural drop following Easter's high

The Australian share market has closed with a natural decline following a strong Easter period that culminated in a record high on Tuesday.

The benchmark S&P/ASX200 index on Wednesday closed with a drop of 105.4 points, or 1.34 per cent, to 7,782.5, its lowest close since March 26.

The broader All Ordinaries fell 112.2 points, or 1.35 per cent, to 8,033.6.

"When we go on this really strong run for a number of months, it always becomes a bit more challenging to remain at these levels," CommSec market analyst Steven Daghlian told AAP.

As the week continues Australia's share market will have to content with oil prices reaching a five-month high - a possible herald for inflation - as well as the release of the ISM Services Purchasing Managers' Index and the non-farm payroll figures in the US later this week.

"If we get some strong figures out with the US this week that ties back into the higher-for-longer narrative for the Federal Reserve ... then you could be looking at the ASX going below 7800," City Index market analyst Matt Simpson told AAP.

Of the ASX's 11 sectors, utilities and energy were the only two showing growth - despite their rates declining from noon - with the two up 0.16 per cent and 0.06 per cent, respectively. 

Australian uranium miner Paladin has continued its upward trajectory from Tuesday, climbing 1.7 per cent, while major energy companies Woodside remained flat and Santos dropped by 0.1 per cent. 

The utilities sector’s strongest company was Origin Energy with a growth of 0.7 per cent.

The sector's growth may be explained by the jump in oil prices, which followed Israel's assassination of Iranian military leaders in Syria and Ukraine's attack on a Russian oil refinery and a munitions factory deep in Russian territory.

The materials sector declined by 0.9 per cent. BHP was down 0.6 per cent, Rio Tinto was up by 0.4 and Fortescue fell by 0.9 per cent.

The big four banks each fell, with the financial sector as a whole dropping 1.3 per cent. 

Westpac dropped 1.0 per cent, ANZ fell 1.3 per cent, Commonwealth Bank declined 1.74 per cent and NAB dropped 1.9 per cent.

Back in the mining sector, Westgold Resources fell by 14.8 per cent after downgrading its production guidance due to flooding and wet weather.

The Australian dollar had risen back above 65 US cents, buying 65.2 US cents, from 64.90 US cents at Tuesday's ASX close.


* The benchmark S&P/ASX200 index on Wednesday finished six points lower at 7,782.5, a drop of 1.34 per cent.

* The broader All Ordinaries dropped 112.2 points, or 1.35 per cent, to 8,033.6.


One Australian dollar buys:

* 65.20 US cents, from 64.90 US cents at Tuesday's ASX close

* 98.81 Japanese yen, from 98.48 yen

* 60.49 Euro cents, from 60.47 Euro cents

* 51.83 British pence, from 51.74 pence

* 109.13 NZ cents, from 109.12 NZ cents

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store