Market snaps four-day losing streak
Australian shares reversed early losses to edge higher as news of an uptick in retail sales helped offset a fall in miners and banking stocks.
The S&P/ASX 200 index added 8.4 points to finish at 5,324.4, snapping four sessions of losses.
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The Big Four banks also lost ground with Westpac slipping 0.5 per cent and ANZ fell 0.4 per cent. The Commonwealth Bank of Australia was trading flat.
The Big Four banks had a stellar year in 2013, rising between 25.1 per cent and 39.3 per cent each in share price, underpinned by high dividend yields and record profits.
“Some analysts feel the banks are prime selling targets,” said Stan Shamu, market strategist at IG in a note to clients. “Credit Suisse is listing Westpac among its top banking stocks to short in 2014.”
On Wall Street, the benchmark S&P 500 index ended nearly flat on Wednesday a equities markets had a muted reaction to the minutes from the US Federal Reserve’s most recent meeting.
“Investors are digesting the comments made by the Fed in the minutes, also the fact that tapering for the first time will be in full force in January, so I think people are holding or taking money off the table,” said Lucinda Chan, division director at Macquarie Bank. “We had a very strong move at the end of last year.”
Data from the Australian Bureau of Statistics showed an uptick of 0.5 per cent in retail turnover for November, compared to a forecast of 0.3 per cent.
Consumer retail staples Woolworths and Wesfarmers added 0.7 per cent and 0.2 per cent respectively.
Elsewhere, HFA Holdings Ltd soared 18.7 per cent to seven-month highs of 92 cents after the holding company for global funds management said it expects improved earnings results for the first half of the 2014 financial year.
Nucoal Resources Ltd slumped 17.2 per cent after the company said it is preparing to lodge a submission to the New South Wales Government arguing as to why its Doyles Creek exploration licence should not be cancelled.
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