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Australian Stock Report Market Wrap Up: Australian shares give up gains

Announcement posted by de2 Communications 27 Apr 2016

SYDNEY - 27 April 2016 -- It was a tale of two sessions today - before lunchtime and after lunchtime.

Before lunchtime saw the market pop higher, with the weak inflation numbers strengthening the case for an interest rate cut from the Reserve Bank of Australia.

The index spiked up to 5281 and the equity bulls were riding the wave.

Post lunchtime saw the market plummet around 90 points, as Aussie dollar selling sucked the positive sentiment out of the market a dragged equities lower.

"The selling was abrupt, violent and indiscriminate," said Chris Conway, Head of Research at the Australian Stock Report.

"When it was all said and done, most sectors finished in the red with financials the biggest drags, whilst energy telcos, consumer staples and healthcare also weighed," Conway added.

After rising as much as 1%, National Australia Bank (NAB) and Westpac (WBC) ended more than 2% lower, Commonwealth Bank (CBA) fell 2.5% and ANZ Banking Group (ANZ) dropped 1.5%.

The losses may be linked to positioning ahead of the banks reporting half-yearly earnings next week, which are expected to show an increase in bad and doubtful debts.

Shares in the consumer discretionary sector managed to hold onto gains after quarterly inflation slipped into negative territory.

On the day, the ASX slipped 33 points (-0.6%) to settle at 5188.

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