ASX 200 weekly wrap: Westpac, ANZ, CBA & CSL down

The Australian share market ended last week lower after it was unable to recover from last Monday’s steep fall linked to global growth concerns.

The benchmark S&P/ASX 200 dropped 0.23% to 6,181 points, while the broader All Ordinaries index fell 0.29% to close at 6,262 points last week.

Last Monday, the market recorded its second largest tumble this year, with more than $20.5 billion wiped from the ASX amid rising global economic fears.

While the market bounced back the following days, it wasn’t enough to recover from Monday’s heavy losses.

AMP Capital Chief Economist Shane Oliver said the market’s volatility was due largely to a plunge in the Australian 10-year government bond yields on the back of an inverted US yield curve, which stoked US and global growth concerns.

“If the momentum of global data doesn’t soon start to stabilise and improve as we expect then the decline in bond yields will start to become a deeper concern,” Dr Oliver said.

“Either way, share markets remain vulnerable to a short-term pullback.”

Leading market value losses last week were three of the big four banks, with Westpac the worst performer, shedding more than $1.8 billion in value.

The bank announced last Monday that its cash earnings in the first half of 2019 would be reduced by an estimated $260 million due to costs associated with implementing customer remediation programs along with interest on fees to be refunded.

Meanwhile, energy provided Woodside Petroleum was weighed down by a slide in the price of oil.

Major iron ore miners made some solid gains, with BHP adding more than $2.9 billion to its market capitalisation and Rio Tinto gaining $1.4 billion in value.

Lynas Corporation’s share price rose 28% to $2.08, after retail heavyweight Wesfarmers made a 1.5 billion takeover bid for the rare earths miner.

Lynas rejected the offer, but Wesfarmers said in a statement that they remained keen to work collaboratively with the company and to hear their solution to regulatory issues in Malaysia.

In other news, vehicle fleet management group Eclipx’s shares continued to slide, falling by more than 14% last week.

This latest plunge means the company’s shares have dropped 68% since the start of the month, following news that its trading conditions have deteriorated since January.

Eclipx also announced this week that it will scrap any interim dividend payouts and will undergo a cost-cutting program.