Australian shares lost ground for a second day but extended their winning streak to four weeks, the best run since mid-April.
For the day, Macquarie Group was among companies to issue negative reports that took the sheen off the corporate outlook.
The benchmark S&P/ASX200 Index ended down 30.6 points, or 0.7 per cent, at 44993.5, while the broader All Ordinaries Index dropped 28.8 points, or 0.6 per cent, to 4507.4.
At that level, the ASX200 index was up 0.8 per cent for the week, making it four weekly advances in a row. The index is also up about 4.5 per cent for the month, the first monthly gain in four.
Among the major sectors, financials, materials and industrials were all off 0.8 per cent for the day, while energy stocks were off 0.9 per cent.
What you need to know
- The Australian dollar was buying 89.9 US cents
- Asian stocks retreat on weak Japanese job numbers
- Gold futures point to losing month, at $US1171
- Oil futures were steady above $US78 an ounce
- Dow futures were off 21 points at 10,388
- Business calendar August 2-6
Local sentiment was dented by disappointing company reports from Macquarie Group and Programmed Maintenance Services.
Macquarie shares ended the day down $1.19, or 3.1 per cent, at $37.20 after the investment bank said earnings in the June quarter were slightly ahead of a subdued prior corresponding period. Earlier, stock fell as much as 6.75 per cent.
''We are really seeing a complete lack of investor confidence (in Macquarie),'' said Burrell Stockbroking adviser Daniel Manley
Other banks also sank. Commonwealth Bank closed down 45 cents at $52.56, Westpac lost 26 cents at $23.99, National Australia Bank fell 20 cents at $25.13 and ANZ fell 14 cents at $23.05.
In other news, grains marketers GrainCorp and AWB have said that the two companies will merge to create one of Australia’s largest diversified agribusinesses.
AWB shares rose 3.5 cents at 99 cents, but GrainCorp fell 37 cents, or 6.15 per cent, at $5.65.
Also on the earnings front, Energy Resources of Australia has revealed a first-half profit plunge as production falls, higher maintenance costs and a stronger Australian dollar took their toll.
Its shares were down 56 cents, or 3.9 per cent, to close at $13.78.
Programmed Maintenance shares sank 64 cents, or 25 per cent, on the day to end at $1.90 after it said it was unlikely to replace all work won last year from the federal government’s stimulus package.
Miners slide
Miners were also dragged lower, with BHP Billiton off 34 cents at $40.12 and rival Rio Tinto down 89 cents, or 1.24 per cent, at $70.61.
Gold producer Newcrest fell one cent at $32.71, while the company it is seeking to take over, Lihir Gold, rose one cent at $4.07.
At the local close, the spot price of gold was trading at $US1,160.00 per fine ounce, down $US8.50 on yesterday’s close of $US1,168.50.
Energy producers were mostly down, with Woodside down 12 cents at $41.60 and Oil Search off four cents at $5.84.
Santos lost nearly two per cent or 27 cents to close at $13.30 and Origin Energy fell 19 cents at $15.44.
On Friday, Origin said annual sales revenues at its exploration and production business were at a record high in fiscal 2010.
Oil and gas producer AWE saw its shares lose 7.5 cents, or 4.59 per cent, to $1.56 after it released June quarter production figures.
Media, retailers
The media sector was not immune to the market sell-off, with News Corp off four cents at $16.37 and that company’s non-voting scrip down 15 cents at $14.42.
Fairfax Media was down one cent at $1.475 while Consolidated Media dropped three cents at $3.10.
After solid gains during the week Wesfarmers shares dropped 14 cents at $31.09 while rival Woolworths rose 23 cents at $25.79.
Among the department stores Myer Holdings was up two cents at $3.45, David Jones was steady at $4.80 and Harvey Norman declined nine cents at $3.50.
The top-traded stock by volume was Telstra, with 69.97 million shares changing hands worth $222.48 million.
Its shares were down one cent, or 0.31 per cent, at 3.22.
Preliminary national turnover was 1.94 billion shares worth $6.68 billion, with 484 stocks up, 511 down and 359 unchanged.
On the Sydney Futures Exchange at 1615 AEDT, the September share price index contract was 29 points higher at 4,465 on a volume of 25,394 contracts.
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What was making news earlier today
The Salvation Army, a bikie gang and the global computer giant Apple have topped a new study into Australia's most effective brands.
Australia's largest media buyer, Harold Mitchell, has signed a $363 million deal to sell the company he founded 34 years ago to a British media group.
iiNet is making a strategic play to increase its market share and stop a competitor buying its takeover target.
And the plot thickens as the Greens have a dig at McCain over the company's scheme to encourage school children to plant vegies.
Plus, Harold Mitchell on what made Masterchef such a ratings winner, Max Newnham on superannuation policy and Elizabeth Knight on Sir Richard Branson and the Virgin question.
Offshore overnight
US stocks ended a choppy day with a modest loss as investors tried to reconcile another batch of conflicting economic signals.
Thursday's trading fit with the market's months-long pattern. Investors are torn between upbeat earnings news from companies and reports that point to an uncertain recovery. That indecision was clear as stocks rose on strong earnings at Southwest Airlines Co, Exxon Mobil Corp and other companies, then fell on disappointment over a slight drop in first-time claims for unemployment benefits.
The Labor Department said initial claims for unemployment benefits dropped by a modest 11,000 to 457,000 last week. That's slightly better than the 459,000 forecast by economists polled by Thomson Reuters, but investors were disappointed because the drop was so small.
Traders were also uneasy ahead of the first reading on US gross domestic product for the April-June quarter, to be released later today.
The Dow fell 30.72 points, or 0.3 per cent, to 10,467.16. The Standard & Poor's 500 index fell 4.60 points, or 0.4 per cent, to 1101.53. The Nasdaq composite index fell 12.87 points, or 0.6 per cent, to 2251.69.
AAP, with BusinessDay