Westpac drags ASX down

ASX lower with biggest drag from Westpac as shareholders put the heat on the bank’s board.

Outgoing Westpac chairman Lindsay Maxsted led the AGM where shareholders put the heat on the bank’s board. Picture: AAP

The local market has reversed almost all of yesterday’s gains, with the biggest drag from Westpac as shareholders put the heat on the bank’s board.

Stocks slipped out of the gates, but downward momentum picked up pace through the session, to touch a low for the day of 6701.2.

By the close, the S&P/ASX 200 was lower by 44 points, or 0.65 per cent, to 6708.8. Meanwhile, the All Ords finished lower by 42 points, or 0.62 per cent, to 6810.8.

Local stocks bucked a boost in regional markets, after indications from the US Federal Reserve that US interest rates would likely remain unchanged next year.

Hong Kong’s Hang Seng was up 1.3 per cent at the local close, while Japan’s Nikkei added 0.24 per cent, but China’s Shanghai Composite was lower by 0.15 per cent.

“There’s a burgeoning belief that global growth ought to pick-up into the new year, however the forecast absence of inflation in the US economy in 2020 means that financial conditions will stay accommodative,” IG Markets analyst Kyle Rodda said.

“Markets are priced delicately that somehow better growth won’t lead to price growth. If this view proves to be a furphy, then the moves in rates markets could be a cause of volatility in markets in the new year, as valuations, by necessity, face adjustment.”

Banks were the biggest market driver, in focus as Westpac held its AGM in Sydney. Chairman Lindsay Maxsted and members of the board felt the heat from shareholders for over six hours.

Ultimately, shareholders dealt the bank a second strike, but voted against a motion to spill the board.

The stock finished lower by 1.2 per cent to $24.08.

Its peers, too, came under selling pressure. NAB lost 1.2 per cent to $24.80, ANZ lost 1.3 per cent to $24.22 and Commonwealth Bank wound back by 0.74 per cent to $79.72.

Macquarie’s credit rating was upgraded by S&P, but shares fell lower by 1 per cent to $134.12.

Mining stocks finished in the green - the only area to gain for the day – but the majors were mixed at the close.

BHP finished flat at $38.60, Rio Tinto slipped by 0.1 per cent to $99.02 but Fortescue lifted by 1.3 per cent to $10.51.

Gold miners edged up after spot gold edged higher overnight. Evolution gained 0.5 per cent to $3.83, Northern Star gained 2.1 per cent to $10.28 and Regis Resources put on 1.8 per cent to $4.42 but Newcrest lost 1.1 per cent to $28.45.

Lynas was a top performer on the market amid reports the US Army was looking to fund construction of a rare earths processing facility to secure supply outside of China. The stock rose by 9.7 per cent to $2.37.

Property fund manager Charter Hall lifted by 4.7 per cent to $10.99 as it announced new acquisitions and lifted its FY20 guidance.

Redbubble almost halved its market value after warning sales on its platform had been sluggish. Shares in the company finished lower by 44 per cent to $1.01.

A broker downgrade on testing group ALS put pressure on its shares, making it the worst performer with a 5.1 per cent slide to $8.95.

Tech and telco stocks also felt the heat. Telstra gave up 2.1 per cent to $3.67, Xero lost 1.5 per cent to $78.80 and Afterpay wound back by 2 per cent to $28.87.