Aust stocks sink as economic, banking fears resurface

The local share market is grinding lower as jittered about a renewed banking crisis in the United States weighs on sentiment.

At noon AEST on Thursday, the benchmark S&P/ASX200 index was down 32.9 points, or 0.45 per cent, to 7,283.4, while the broader All Ordinaries was down 30.8 points, or 0.41 per cent, to 7,472.1.

Clifford Bennett, chief economist at ACY Securities, wrote in a note that a number of challenges were coming to the fore, including questions about the stability of First Republic Bank, global geopolitical tensions between East and West and growing concerns about the "distraught" US economy.   

"The reasons for the across the board declines yesterday are many, but the underlying feeling of the market really is one of exhaustion, and the disappointment that the banking crisis is not as over as many had hoped," he wrote.

Nine of the ASX's 11 official sectors were lower at midday, with only the defensive areas of consumer staples and telecommunications both slightly in the green.

Consumer discretionary and health care shares were the biggest losers, both down 0.9 per cent. Wesfarmers was down 0.9 per cent and Aristocrat Leisure had fallen 1.6 per cent.

Blackmores had soared 21.8 per cent to $93.50 after the vitamin maker agreed to be acquired by Japanese brewing giant Kirin for $1.88 billion, or $95 a share. 

The company's largest shareholder, Marcus Blackmore, pledged to back the takeover, calling it "the next evolution of the business my father founded 90 years ago." 

The heavyweight financial sector was down 0.5 per cent with losses for most of the Big Four banks.

CBA was down 0.8 per cent, NAB had dropped 0.9 per cent and Westpac had edged 0.2 per cent lower, while ANZ was up marginally, 0.1 per cent.

In the mining sector, both BHP and Fortescue were in the green but overall the sector was on track for its fifth day of losses, down 0.3 per cent.

The Big Australian was up 0.1 per cent, Fortescue had added 0.7 per cent but Rio Tinto was down 0.4 per cent and most goldminers were also in the red.

Adbri had dropped 5.2 per cent to $1.55 after the cement manufacturer said its project to consolidate its Western Australia cement plants in Kwinana would cost $385 million to $420 million - about double the amount originally estimated in December 2020. Adbri cited the escalated cost of construction, labour constraints and supply chain challenges.

Helloworld added 7.8 per cent to $2.90 after the travel company increased its full-year guidance, citing strong demand for leisure travel despite economic challenges. Based on year-to-date results, Helloworld expects full-year earning of up to $42m, or $10m more than previously forecast.

A finish in the red would be the ASX's fifth consecutive day of losses, although three of them have been very modest.