Stocks end week 2.5pc lower

The local market has closed firmly in the red, ahead of US jobs numbers due overnight.

The Australian sharemarket ended the week as meekly as it started it, as investors were unwilling to make bets on a rebound ahead of crucial US jobs numbers due out on Friday night (AEST).

At the closing bell, the benchmark S&P/ASX 200 index had slumped 42.8 points, or 0.79 per cent, to 5,372.8, while the broader All Ordinaries index stumbled 40.6 points lower, or 0.74 per cent, to 5,470.6.

The weak session pushed the index down 2.5 per cent on the week, its worst showing in more than two months.

CMC Markets chief market analyst Ric Spooner said the session was a test of the market’s stability amid caution ahead of the US data, with “downward momentum” at risk of continuing into next week as support levels were tested.

The resources sector was the only bright spot through the day, with bargain hunters driving energy higher near the end of trade and gold miners performing strongly through the session.

The big names in energy saw contrasting fortunes despite recovering off early lows seen after crude prices weakened 3 per cent offshore, with Santos closing flat at $4.30, Origin jumping 2 per cent to $5.19 and Woodside losing 1 per cent to $28.08.

Over the past fortnight the three energy giants have lost between 5 and 11 per cent, with Santos the laggard.

In mining, BHP inched up 0.05 per cent to $19.85, Fortescue lost 1.2 per cent to $4.84 and Rio Tinto rallied 0.9 per cent to $47.41.

Gold miners were the primary outperformers as Newcrest leapt 3 per cent and Regis Resources bounded 4.4 per cent.

Investors shunned the traditionally defensive sectors of telecommunications and healthcare, with both sliding around 2 per cent at the close.

The financial sector was also neglected for a third day, with the big four off around 1 per cent as the shadow of a royal commission and more regulation hangs over the sector’s head.

Among other blue chips, Telstra retreated 2.1 per cent to $5.12, while Qantas gave back 0.3 per cent to $3.26 as Alan Joyce’s record pay packet was unveiled.

Elsewhere, Aurizon went against the broader trend in rising 0.2 per cent after it revealed chief executive Lance Hockridge would be replaced by former Rio Tinto iron ore boss Andrew Harding, while Alumina surged 5.8 per cent after it terminated legal action against JV partner Alcoa.

Meanwhile, the Australian dollar closed the local trading week at US75.5c, barely budging during the Friday session as traders waited on US jobs data.