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After rallying last week, the Australian Securities Exchange fell to 5,055.2 points, a 0.2-percent, or 9.6-point, decline.
After rallying last week, the Australian Securities Exchange (ASX) fell to 5,055.2 points, a 0.2-percent, or 9.6-point, decline. Friday’s settlement marks its fourth loss of the week, but pales in comparison to the 94.33-point drop that occurred on August 7.
The Sydney Morning Herald reported that competing factors kept the market from fluctuating too much after strong gains the previous day. Bank stocks ceded some ground, but the precious metals sector rebounded to mitigate the losses.
Included in those gains were Fortescue Metals Group (ASX:FMG), which rose by $0.21, or 5.5 percent, to $4.01, as well as Regis Resources (ASX:RRL), an Australian gold and nickel mining company that jumped to $3.42, a $0.15, or 4.6-percent, gain.
While the majority of the mining sector settled higher, Monadelphous Group (ASX:MND), dropped by 2.2 percent, or $0.37, to close at $16.40. Its share price is down more than 32 percent year to date.
Analysts expect the effects of US monetary policy will impact the market going forward.
”We think the bigger story in the coming quarters is going to be associated with the Federal Reserve, and that poses a downside risk to the Aussie dollar from the level’s it’s at now,” said Paul Bloxham, chief economist at HSBC.