By Ross Kelly
SYDNEY--Australian stocks fell for the fifth consecutive day,
capping their worst week in three years, after weak local economic
data and heightened volatility in global financial markets shook
investors' confidence.
The benchmark S&P/ASX 200 index ended Friday down 0.1% at
5498.5 points, bringing the week's losses to 4.8% and eroding most
of the strong gains in early 2015.
Banking stocks were sold off heavily throughout the week amid
expectations interest rates in the U.S and Europe would rise as
their economies recover. But uncertainty over the strength of the
U.S. economy and whether Greece can secure a bailout package
contributed to a 0.9% fall in the Dow Jones Industrial Average
overnight Sydney time.
Disappointing Australian retail sales and national-accounts data
added to the gloom, as regulators question whether the country's
record-low interest rates are causing a housing-market bubble.
"Investors continue to echo the idea of catching a falling
knife, as the market scratches its head over when might be a good
time to buy back into the financials," said Betty Lam, a
Sydney-based trader at CMC Markets.
Some traders believe banks' dividend payments are starting too
look attractive again, compared with their share-price values. "The
financials aren't doing particularly well but I feel as the
dividend yield rises, so will the interest in these names," said
Stan Shamu, a Melbourne-based strategist at IG.
Shares of Commonwealth Bank of Australia (CBA.AU), Westpac
Banking Corp. (WBC.AU), Australia & New Zealand Banking Group
Ltd. (ANZ.AU) and National Australia Bank Ltd. (NAB.AU) fell 0.3%,
0.7%, 1.1% and 1.5%, respectively. Higher global interest rates can
be bad for dividend plays because they make rival investment
options such as bonds more attractive.
Key U.S. jobs data and a meeting of the Organization of the
Petroleum Exporting Countries are due later in the day.
Australian energy stocks closed mixed ahead of the OPEC meeting,
as members are expected to leave their production targets unchanged
and continue flooding an over-supplied market with oil. Woodside
Petroleum Ltd. (WPL.AU) shares rose 0.3% while Santos Ltd. (STO.AU)
shares fell 0.6%.
The big diversified mining companies were also mixed after
iron-ore prices continued its shaky recovery. BHP Billiton Ltd.
(BHP.AU) shares fell 0.7% while Rio Tinto Ltd. (RIO.AU) shares rose
0.5%.
Write to Ross Kelly at ross.kelly@wsj.com