Australia Market extends losses

Australia stock market finished lower for second straight session on Wednesday, 22 February 2023, weighed down by retailers, materials, and financials stocks, as selloff continued on tracking weak lead from Wall Street overnight.

At closing bell, the benchmark S&P/ASX200 index was down 15.22 points, or 0.21%, to 7,336.30. The broader All Ordinaries index fell 7.91 points, or 0.1%, to 7,544.58.

The top performing stocks in S&P/ASX200 index were ORIGIN ENERGY and THE A2 MILK CO, up 12.69% and 6.25% respectively. The bottom performing stocks in S&P/ASX200 index were DOMINO'S PIZZA ENTERPRISES and NEWS CORPORATION, down 23.81% and 8.94% respectively.

Consumer discretionary stocks suffered the most losses, with shares in Domino's Pizza falling 23.8% on disappointing first-half results due largely to high inflation. It also cut its dividend. Pizza delivery chainsaid its profits were down 28.3% to $63.9 million for the December half, and cut its dividend.

Woolworths' shares jumped close to 2% after the supermarket operator reported a 14% rise in profit after tax before significant items to $907 million. Earnings before interest and tax for the period came in 18.4% higher at $1.6 billion.

Materials and resources were also lower. Fortescue's share price fell by 1.76% and Rio Tinto slipped 0.5% as investors waited for the release of its earnings. BHP, which reported a fall in first-half profit and a 40% cut to its dividend on Tuesday, seesawed and ended the day flat

Origin Energy shares jumped 12.7%, after its two North American suitors submitted a revised takeover bid for the energy giant, raising hopes a deal will be done. Meanwhile, rival energy major Santos climbed over 3% after the company tripled its full-year net profit to US$2.1 billion and lifted its final shareholder payout by almost 80%, thanks to soaring international gas prices.

ECONOMIC NEWS: The Australian Bureau of Statistics or ABS said on Wednesday that the value of total construction work done in Australia was down a seasonally adjusted 0.4% at A$55.272 billion on quarter in the fourth quarter of 2022, following the 2.2% gain in the three months prior. On a yearly basis, construction was up 1%.

The Australia Bureau of Statistics also said the wage price index in Australia was up a seasonally adjusted 0.8% on quarter in the fourth quarter of 2022. On a yearly basis, wages climbed 3.3% - also missing forecasts for 3.5% but up from 3.1% in the previous quarter.

CURRENCY NEWS: The Australian dollar was stood at 0.6828 against greenback on Wednesday, down 0.34% from previous trading day closure at 0.6852 after trading in the range of 0.6823-0.6865.

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