The share market is lower as Commonwealth Bank lost value after
paying a dividend and ANZ's trading update disappointing investors.
Commonwealth Bank was down about 2.5 per cent after paying its half year dividend to shareholders, which typically results in a fall in share price.
"It's paying out cash to shareholders, so that's taking money out of the market," CommSec market analyst Juliana Roadley said.
ANZ's quarterly update, which showed another rise in cash profit but a fall in the profitability of its lending, was also weighing on investor's minds, she said.
"The result wasn't that bad, but one thing that we have seen from most of the banks that have reported so far is a concern about their net interest margins," Ms Roadley said
"When you look at the weighting of those two large stocks in the banking sector being down, that's pulling the index into the red at the moment."
Commonwealth Bank had dropped $2.67 to $90.97, ANZ was down 81 cents, or 2.3 per cent, at $35.06, while National Australia Bank was up 23 cents at $37.73 and Westpac was 18 cents higher at $37.83.
In the resources sector, Fortescue Metals had gained one cent to $2.69 despite cutting its dividend after an 81 per cent fall in half year profit.
Read more at Click here / www.trade4x.net
Commonwealth Bank was down about 2.5 per cent after paying its half year dividend to shareholders, which typically results in a fall in share price.
"It's paying out cash to shareholders, so that's taking money out of the market," CommSec market analyst Juliana Roadley said.
ANZ's quarterly update, which showed another rise in cash profit but a fall in the profitability of its lending, was also weighing on investor's minds, she said.
"The result wasn't that bad, but one thing that we have seen from most of the banks that have reported so far is a concern about their net interest margins," Ms Roadley said
"When you look at the weighting of those two large stocks in the banking sector being down, that's pulling the index into the red at the moment."
Commonwealth Bank had dropped $2.67 to $90.97, ANZ was down 81 cents, or 2.3 per cent, at $35.06, while National Australia Bank was up 23 cents at $37.73 and Westpac was 18 cents higher at $37.83.
In the resources sector, Fortescue Metals had gained one cent to $2.69 despite cutting its dividend after an 81 per cent fall in half year profit.
Read more at Click here / www.trade4x.net
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