Australian market drops on profit booking

The Australian stock market ended the session lower on Wednesday, June 29, 2022, weighed down by an overnight tumble on Wall Street and gains locked in after the market’s recent strong rally. However, market losses were capped in response to upbeat Australian retail sales data.

At the close, the benchmark S&P/ASX200 fell 63.41 points, or 0.94%, to 6,700.23. The broader All Ordinaries index lost 75.58 points, or 1.09%, to 6,878.86.

The best performing stocks in this index were LIONTOWN RESOURCES and SKYCITY RESOURCES, up 5.2% and 3.9% respectively. The worst performing stocks in this index were TYRO PAYMENTS and IMUGENE, down 16.67% and 13.95% respectively.

In total, 8 of 11 sectors were down along with the S&P/ASX 200 Index. Real Estate Trust was the worst performing sector, down 4%, followed by Information Technology (down 2, 8%), telecommunications services (down 2.2%), healthcare (down 1.5%) and materials (down 1.5%).

Finance was the best performing sector with +0.27%

Investors took inspiration from an overnight sell-off on Wall Street after dismal US consumer confidence data stoked recession fears. US consumer confidence hit a 16-month low in June as concerns over lingering inflation left consumers anticipating a significant slowdown in the economy or even a recession in the second half of the year.

Shares of tech companies skidded following a weak lead in the tech-heavy Nasdaq composite index overnight. Block fell 6.2%, while accounting software maker Xero erased 6.4%.

Star Entertainment soared 3.14% after the casino operator announced it had named Robbie Cooke, chief executive of fintech company Tyro Payments, as its new chief and chief executive.

Tyro Payments plunged 21.2% after the company announced Cooke would give 6 months notice before joining Star Entertainment.

Energy stocks rose on the back of high oil prices. Energy heavyweights Woodside Energy and Santos rose 3.1% and 1.9% respectively, lithium miner Liontown Resources jumped 17.4% after signing a lithium supply deal with Ford Motor Co.

In economic news, retail sales hit a record A$34.2 billion, up 10.4% from May last year, according to data from the Australian Bureau of Statistics. published on Wednesday.

CURRENCY NEWS: The US Dollar Index, which tracks the greenback against a basket of its peers, was at 104.485, rebounding from below 104 earlier this week. The Australian dollar was at $0.6884.

Powered by Capital Market – Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and up-to-date with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor