Australia Market drops on profit booking, record virus cases

The Australian share market finished session down on Wednesday, 22 July 2020, as investors locked in recent profits amid concerns about a record surge in Covid-19 cases in the country. At closing bell, the benchmark S&P/ASX200 index declined 81.23 points, or 1.32%, to 6,075.06. The broader All Ordinaries dropped 76.15 points, or 1.21%, to 6,192.64.

Australia recorded 501 new coronavirus infections in the past 24 hours, its highest since the epidemic took hold in March, with Victoria state, of which Melbourne is the capital, accounting for almost 97% of the new cases. Neighbouring New South Wales state with 16 new cases was put on "high alert" due to community transmission and Covid-19 cases in new places.

Healthcare stocks fell, weighed down by industry behemoth CSL and Cochlear, each dropping nearly 4%.

The big banks were all lower, with CBA down 0.4% and NAB down 0.8%. ANZ and Westpac both dipped 0.6%.

Materials and resources stocks were lower. Mining giant BHP fell 3.4%, Rio Tinto declined 1.5%, and Fortescue Metals dipped 1.9%. Copper miner OZ Minerals rose 4.2% after upgrading its production guidance following a strong first half at both its Prominent Hill and Carrapateena mines in SA.

Tech stocks suffered on profit booking. Afterpay dropped 3.4%, Wisetech Global fell 3.9%, and Altium dipped 2.8%.

Bucking the trend, gold miners were higher, with Newcrest, Evolution and Northern Star up between 0.6% and 1.3%, while Resolute Mining soared 13% after reporting strong production from its Syama Gold Mine in Mali.

Energy stocks gained on following a rise in Brent crude prices, with Woodside up 1.3% and Santos gaining 2.3%. Beach Energy shares jumped 4.7% after announcing its full-year earnings and oil production will be close to previous guidance, despite the impact of the coronavirus pandemic and low oil prices.

CURRENCY NEWS: The Australian dollar was buying over 71.50 US cents for the first time since April 2019, having risen nearly 30% since hitting a 17-year low in March.

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