MARKET COMMENT: S&P/ASX 200 Down 0.4%; NAB Leads Bank Selloff

2354 GMT [Dow Jones] Australia's S&P/ASX 200 is down 0.4% at 5102.09, on track for a second-consecutive daily decline, after hitting a 4 1/2 year high of 5163.5 Tuesday. NAB (NAB.AU) falls 2.8%, leading declines among banks, after its strategy update failed to give fresh bullish catalysts, and its cost-cutting plan undershot expectations. Overnight weakness in the S&P 500 Financials sector is also a negative factor for the sector. Investors are partially rotating to resources, with BHP (BHP.AU), Rio Tinto (RIO.AU), Newcrest (NCM.AU) and Fortescue (FMG.AU) up 0.7%-3.2% after a better night for most commodity prices. "There does appear to be a bit of rotation from banks to resources today, but it's not a dollar for dollar switch," says CMC Markets' chief market strategist, Michael McCarthy. "That failure yesterday by the index--surpassing the previous high, then closing below it--is adding some downward pressure to the market." The market is ignoring positive economic data, with Westpac's Consumer Sentiment Index rising 2% in March from February, to its highest since September 2010. McCarthy expects a test of uptrend line and 20-day moving average support at 5070. ([e-mail])

 
Contact us in Singapore. 65 64154 140; [e-mail] 
 
 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires