SYDNEY, June 16 (Xinhua) -- The Australian share market opened flat on Friday as losses in the major stocks offset the gains made across the rest of the index.
At 1010 local time AEST, the S&P/ASX200 index was up 2.80 points, or 0.05 percent, at 5,766.00 points, while the broader all ordinaries index rose 5.90 points, or 0.10 percent, at 5,766.00 points.
The Australian market is generally performing well, according to Ric Spooner, CMC Markets chief market analyst who told Xinhua that this was despite some losses in the U.S. bourse.
"Essentially it's a bit of mean reversion, we've had a very volatile week in the Australian market, and some really urgent buying on Tuesday and Wednesday, as well as heavy selling on Thursday," Spooner said.
"Today, even though the U.S. markets are a bit weaker, we are seeing the bargain hunters creep back into the market, based on the fact that things have settled down a bit."
Mining and materials stocks continued to be a drag on the index as investors remain "unconvinced", according to Spooner,
"Mining and material stocks are the notable exception, that's despite the firmness in the iron ore price yesterday," Spooner said.
The market expert said investors would get "real comfort", if iron ore prices showed more concrete signs of consolidating.
The major banks took a large hit as confusion and concern about 1 billion dollars bank levy introduced by the Australian government ensues. Senior executives from major Australian banking associations spoke out on Friday, saying the government tax on banks disadvantages local financial institutions.
"Decisions have been made in a very short period of time, without due consideration about how that might affect other parts of the banks involved," Australian Bankers Association chief executive Anna Bligh said on Friday during a hearing.
The Commonwealth Bank fell 0.73 percent, Westpac lost 2.65 percent, ANZ was down 2.17 percent and National Australia Bank dropped 2.09 percent.
BHP lost 2.08 percent, Rio Tinto plummeted 3.69 percent, Fortescue Metals fell 2.39 percent, while Newcrest Mining dropped 1.79 percent.
Oil Search was down 2.04 percent, Santos plummeted 4.70 percent and Woodside Petroleum lost 1.74 percent.
Wesfarmers was up 0.27 percent and Woolworths slid 0.27 percent.
Qantas was down 0.55 percent, CSL dropped 1.82 percent and Telstra rose 0.23 percent.
The Australian dollar was currently buying 75.87 U.S. cents, while crude oil was trading at 44.37 U.S. dollars per barrel.
