Political unrest unsettles Aus sharemarket

The Australian sharemarket is in for a volatile week after turbulence in emerging markets spooked investors on Friday.

At the close on Friday, the benchmark S&P/ASX200 index was 22.1 points, or 0.42 per cent, lower at 5,240.9 and the broader All Ordinaries index was down 21.2 points, or 0.4 per cent, at 5,254.3.

It was the third straight week local shares had finished in the red.

AMP Capital Investors chief economist Shane Oliver says the main issue worrying investors on Friday was political trouble in the emerging markets.

Mr Oliver says the instability has occurred at the same time the US Federal Reserve is winding back its monetary stimulus.