The Australian sharemarket ended the week more than two per cent lower, as the big banks weighed and shares in Telstra Corp Ltd fell to an all-time low.
For the week, the benchmark S&P/ASX 200 and broader All Ordinaries indices lost 2.3 per cent to 4,480.9 points and 4,459.6 points, respectively.
The market was dominated by a flurry of corporate earnings reports, which painted a particularly uncertain picture for the financial sector.
National Australia Bank Ltd lost 4.52 per cent, ending at $23.87, after the lender posted cash earnings of about $1.1 billion for the third quarter, but warned of continued uncertainty in global markets.
The bank also agreed with AXA Asia Pacific Holdings Ltd and France's AXA SA to an extension to September 9 of the deadline by which the bank must satisfy the Australian Competition and Consumer Commission regarding its concerns that NAB's proposed takeover of AXA APH will lessen competition.
Rival lender Commonwealth Bank of Australia Ltd delivered a cautious outlook for fiscal 2011, after the bank lifted its full-year earnings 42 per cent to 4.31 billion in the 2010 financial year. Its shares slipped 1.38 per cent to $51.48.
Elsewhere in the sector, ANZ Banking Group Ltd tumbled 7.35 per cent to $21.18 and Westpac Banking Corp Ltd surrendered 3.84 per cent to $22.52.
Macquarie Group Ltd, Australia's largest investment bank, gave up 1.64 per cent to $38.45.
Telstra was the worst performing bluechip this week, plummeting more than 11 per cent to end at $2.92, after briefly touching an all-time low of $2.82.
The fall came after Telstra warned on Thursday that its 2011 earnings would decline sharply.
The big miners were also weaker, with BHP Billiton Ltd falling 1.34 per cent to $40.40 and Rio Tinto Ltd sliding 2.41 per cent to $71.43.
However, Fortescue Metals Group Ltd, Australia's third-largest iron ore miner, edged up 0.23 per cent to $4.44. On Saturday, the miner's chief Andrew Forrest stepped up his attack on the government's mineral resource rent tax in an editorial published in the Weekend Australian, saying the revamped proposal is as damaging as the original.
Gold miners were little changed, despite a lift in bullion prices, with Newcrest Mining Ltd ending the week flat at $34.70 and its takeover target, Lihir Gold Ltd, edging up half a per cent to $4.31.
Oil stocks were mixed, with Woodside Petroleum Ltd falling 1.26 per cent to $41.51 and Oil Search Ltd sinking 1.18 per cent to $5.84, while Santos Ltd put on 3.48 per cent to $13.97.
The retail sector was a rare bright-spot in a week that Myer Holdings Ltd raised its earnings guidance despite tough trading conditions in the forth quarter.
Myer shares rallied 7.54 per cent, ending at $3.71, as rival department store operator David Jones Ltd gained 3.2 per cent to $4.83. JB Hi-Fi, the electronics retailer, rose 6.15 per cent to $20.30.
In the supermarket space, Woolworths Ltd added 1.44 per cent to $26.74 and Wesfarmers Ltd slipped 1.18 per cent to $30.96.
The local market won back some ground on Friday, closing more than one per cent higher. The benchmark S&P/ASX200 index added 1.33 per cent while the broader All Ordinaries index gained 1.32 per cent.
