Investors relaxed from pushing Australian shares higher as interest builds for the Reserve Bank’s first meeting since the US raised rates.
The ASX posted its second consecutive marginal loss on Friday after a run of seven consecutive days of gains ended mid-week.
While US jobs data is due overnight, the main talking point for Australian investors next week will be the Reserve Bank’s rate decision and commentary on Tuesday.
Higher inflation pushed the US Federal Reserve in March to hike for the first time since 2018.
Some Australian experts have tipped the Australian central bank to raise rates from the record low 0.1 per cent from May.
However Westpac chief economist Bill Evans disagreed.
“We remain comfortable with our own view that the patient approach from the RBA will see the first increase in August,” he said.
Mr Evans said the annual inflation rate for the June quarter was likely to drop about 0.5 per cent due to lower petrol prices.
This will be helped by the government halving the fuel excise for six months.
Mr Evans said if the Reserve Bank was to raise rates in May, its commentary next week would have to ditch its common refrain of being patient on increases.
He said dropping the ‘patient’ word would signal a reaction which he did not believe was justified.
In the latest trading day, gains for the commodity shares of energy and materials offset losses for much of the market, particularly in consumer discretionaries and telecommunications.
The benchmark S&P/ASX200 index closed down 5.8 points, or 0.08 per cent, to 7493.8.
The ASX200 index has struggled to stay higher than 7500 points in the past week.
The current level of 7493.8 points is a little more than 100 points from its record of August.
The All Ordinaries index closed lower by 3.7 points, or 0.05 per cent, to 7785.9.
The market had its third consecutive week of gains and improved 1.18 per cent.
In company news, a NSW planning panel has approved extending the life of Whitehaven Coal’s mine at Narrabri.
The decision extends the life of the mine from 2031 to 2044, as long as Whitehaven limits carbon emissions.
Whitehaven was up about half a per cent to $4.17.
The mining giants were higher. BHP improved one per cent to $52.39 and was a little more than $2 from its record price.
Fortescue was higher by almost two per cent to $21.06. Rio Tinto was up one per cent to $120.34.
Most of the big four banks were down one per cent. NAB was best. It was little changed at $32.33.
Property advertising group Domain is buying a real estate marketing technology provider and raising $180 million.
Domain will buy Realbase for the same value and may pay $50 million more if targets are achieved.
The company will sell new shares for $3.80 each.
Domain shares were paused from trading but last sold for $4.01.
Star Entertainment chairman John O’Neill will run the company while it searches for a permanent boss.
Matt Bekier resigned as chief executive this week after an inquiry found Star workers failed in their responsibilities to prevent criminals using casinos.
Star was little changed at $3.24.
Ampol and petrol station operator EG have dropped legal claims against each other.
The two companies had disputed terms relating to EG’s purchase of a Woolworths fuel business in 2019.
Ampol will be the exclusive supplier to stores within the EG Australian network.
Ampol was down less than half a per cent to $30.51.
The Australian dollar was buying 74.79 US cents at 1726 AEDT, lower from 74.85 US cents at Thursday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index closed down 5.8 points, or 0.08 per cent, to 7493.8 on Friday.
* The All Ordinaries index closed lower by 3.7 points, or 0.05 per cent, to 7785.9.
* At 1726 AEDT, the SPI200 futures index was even at 7469 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 74.79 US cents, from 74.85 cents on Thursday
* 91.50 Japanese yen, from 91.14 yen
* 67.62 Euro cents, from 67.03 cents
* 56.95 British pence, from 56.99 pence
* 108.11 NZ cents, from 107.64 cents.
