Australia: Market closes at 6-weeks low

Australia stock market finished session at six-week low on Tuesday, 20 December 2022, registering fourth straight day of losing streak, on following the broadly negative cues from Wall Street overnight.

Market risk sentiments dampened amid concerned that aggressive monetary policy moves by central banks across the world could tip the global economy into recession next year. Meanwhile, the Bank of Japan's decision to unexpectedly reverse course on its yield-curve-control policy further fuelled rate hike fears.

At closing bell, the benchmark S&P/ASX200 index stumbled 109.60 points, or 1.54%, to 7,024.27. The broader All Ordinaries index fell 121.42 points, or 1.66%, to 7,199.56.

All 11 sectors ended lower along with the S&P/ASX 200 Index. Information technology was worst performing sector, declining 4.4%, followed by A-REIT (down 3.8%), healthcare (down 0.84%), consumer discretionary (down 3.5%), and telecommunication services (down 2%).

The top performing stocks in S&P/ASX200 index were STEADFAST GROUP and AUB GROUP, up 2.1% and 2% respectively. The bottom performing stocks in S&P/ASX200 index were JOHNS LYNG GROUP LIMITED and LIONTOWN RESOURCES LIMITED, down 12.33% and 10.30% respectively.

Shares of materials and resources companies declined after base metal prices dropped overnight, with copper down 0.3%, aluminium 1% and gold futures fell 1%. Pilbara Minerals slumped 4.2%, Newcrest mining closed 2.7% weaker and Northern Star Resources fell 2.2%.

Among individual movers, Star Entertainment Group shares continued to fall on Tuesday, declining 9.4% after drop of 15% on Monday, following the announcement by NSW Treasurer Matt Kean on Monday that Sydney's two casinos will pay hundreds of millions of dollars extra in taxes on table game and poker machine operations.

Shares in Domain Holdings Australia fell after the digital property portal updated the market that conditions in the real estate market have deteriorated since its annual general meeting.

Shares in Johns Lyng Group dropped after its COO Lindsay Barber sold 31% of his stake or about 4 million shares in the property services group.

ECONOMIC NEWS: Minutes from the Reserve Bank of Australia's December meeting showed that the central bank had considered a number of options for its cash rate decision, including a complete pause in hikes. The Board considered several options for the cash rate decision at the December meeting: a 50 basis point increase; a 25 basis point increase; or no change in the cash rate, the minutes said. RBA board members also noted the importance of acting consistently, adding that the central bank will continue to consider a range of options for the upcoming year as well.

CURRENCY NEWS: The Australian dollar was stood at 0.6668 against greenback on Tuesday, declined by 0.5% from yesterday's close of 0.6699, after trading in the range of 0.6629-0.6743.

Powered by Capital Market - Live News