Australian shares slipped 0.4 per cent today, posting their worst financial year performance in 26 years, as investors continued to fret about the impact of record oil prices on company profits and economic growth.
While analysts said the Australian market, which fell nearly 17 per cent in theyear to June 30, may see a bounce in the near term as investors hunt for bargains after recent hefty losses, it was likely to struggle in the months ahead.
"Beyond a possible bounce over the next few weeks, the going is likely to remain rough over the next three or four months," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors.
"Slowing growth, very high oil prices, inflation worries and high bond yields are all short-term headwinds for shares."
The benchmark S&P/ASX 200 index .AXJO shed 21.7 points to 5,215.3, based on the latest available data, its lowest closing level since March 20.
The index fell 16.9 per cent in the year to June 30, its worst financial year since 1982 when the then-benchmark index fell 32.4 per cent, according to Oliver.
The market fell 2.6 per cent in the second quarter after dropping 15.5 per cent in the previous quarter, and has lost 17.7 per cent so far this year after rising 11.8 per cent in 2007.
