Australia Market closes lower

Australia stock market finished session steep lower on Monday, 27 February 2023, tracking losses on Wall Street late last week, as stronger-than-expected U.S. economic data stirred concern that monetary tightening by the Federal Reserve is nowhere near ending.

At closing bell, the benchmark S&P/ASX200 index was down 82.22 points, or 1.13%, to 7,224.81. The broader All Ordinaries index declined 93.08 points, or 1.24%, to 7,419.62.

The top performing stocks in S&P/ASX200 index were TPG TELECOM and COMPUTERSHARE, up 5.92% and 2.5% respectively. The bottom performing stocks in S&P/ASX200 index were DOWNER EDI and INVOCARE, down 23.7% and 10.9% respectively.

Total 9 of 11 sectors were lower along with the S&P/ASX 200 Index. Materials was the worst performing sector, falling 3.15%, followed by A-REIT (down 2.1%), consumer discretionary (down 0.9%), industrials (down 0.84%), and telecommunication services (down 0.75%) sectors. Energy was the best performing sector, gaining 0.25%.

Shares of materials sector was the heaviest weight on the index, after a crackdown on pollution in China depressed iron ore prices. Pilbara Sands (down 7.3 per sent), Mineral Resources (down 6.4 per cent) and Lynas Rare Earths (down 6.2 per cent) were the biggest large-cap decliners. Heavyweights BHP (down 3 per cent) and Fortescue (down 4 per cent) also dragged down the index.

Local engineering and construction services firm Downer EDI's shares slumped sharply after it cut its full-year guidance for the second time in three months. Shares in the company fell 23.2 per cent on Monday, to $3.04, after Downer restated its full-year guidance to between $170 million and $190 million.

Shares in Downer EDI fell 18% after the engineering firm reported a 21% drop in half-year net profit. It also cup full-year profit guidance and confirmed it overstated earnings in the previous three financial years.

Internet service provider TPG was up 5.9% after posting double-digit profit growth and optimistic forecasts for this financial year.

ECONOMIC NEWS: Australia's company gross operating profits surged a seasonally adjusted 10.6% on quarter in the fourth quarter of 2022, the Australian Bureau of Statistics said on Monday. That blew away expectations for an increase of 1.5% following the upwardly revised 11.5% decline in the three months prior (originally -12.5%). On a yearly basis, operating profits jumped16%, inventories gained 5.9% and wages advanced 11.6%.

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