In their worst week in two months, Australian shares fell nearly 4% over the five days as earnings season got under way and the energy and financial sectors dragged on the broader market.
The benchmark S&P/ASX 200 index lost 135.30, or 2.4%, on Friday alone, to finish the week down 3.9% at 5,474.80 following a poor lead from Wall Street.
In the US, media stocks, including News Corp, were sold off after weaker-than-expected earnings in the sector sparked concerns over the demise of traditional television and its advertising revenue.
Back in Australia, Rio Tinto (ASX: RIO) was the largest company to report, unveiling a 43% contraction in underlying earnings on the back of falling commodity prices, particularly iron ore.
Market heavyweight BHP Billiton (ASX: BHP) fell 2% over the week, including a drop of nearly 3% on Friday, to $25.93.
The diversified mining and energy company’s share price has fallen nearly 19% over the past three months, weighed down by falling prices of iron ore and oil.
Australian and New Zealand Banking Group (ASX: ANZ) fell 7.5% on Friday to $30.14 after it raised $2.5bn to buttress its capital requirements.
Last month, financial watchdog the Australian Prudential Regulatory Authority (APRA) ordered the nation’s five largest banks to set aside more money to cover potential losses in their residential mortgage businesses, effective from July 2016.
Over the week, the remainder of Australia’s big four banks performed as follows:
CommBank (ASX: CBA) dropped nearly 7% over the week, including a 3.8% decline on Friday, to $81.30
Westpac Banking Corp (ASX: WBC) fell nearly 7% over the week, losing 3.3% on Friday, to $32.35
National Australia Bank (ASX: NAB), which raised $5.5bn in June, slid 5.3% over the week, including 2.3% on Friday, to $32.82.
Meanwhile Macquarie (ASX: MQG), the fifth bank affected by the APRA guidelines, fell just over 2% over the week, including 1.1% on Friday.
Defensive companies like supermarkets fared relatively better than most others. Wesfarmers (ASX: WES), which owns Coles, shed 1% over the week to $41.93, and rival Woolworths (ASX: WOW) gave up 2.9% to $27.73, including a 1.4% loss on Friday.