Australia Market extends losses to 3rd day

Australia stock market finished lower for third straight session on Thursday, 23 February 2023, following the mixed cues from Wall Street overnight, with shares in materials and energy companies led retreat amid tumbling commodity prices.

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 EAGERS AUTOMOTIVE and QUBE HOLDINGS, up 8.97% and 8.69% respectively. The bottom performing stocks in S&P/ASX200 index were BEGA CHEESE and QANTAS AIRWAYS, down 7.78% and 6.80% respectively.

Total 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Materials was the worst performing sector, falling 1.56%, followed by consumer staples (down 0.87%, and energy (down 056%) sectors. Utilities was the best performing sector, gaining 1.17%, followed by healthcare (up 1.1%) and information technology (up 0.7%) sectors.

Aussie market tracked weak lead from US peers as the minutes from the Federal Reserve's February meeting revealed that further rate hikes are in the pipeline to squeeze inflation. The minutes acknowledged that inflationary pressures have moderated but noted price growth remains well above the Fed's 2% target, with labor market tightness contributing to continuing upward pressures on wages and prices.

Materials and resources stocks were biggest drag on the benchmark, with mining giant Rio Tinto's leading retreat, down 1.7%, as the company profits took a dive in 2022, falling 41% to $US12.4 billion. Rival BHP was down 3.4% and Fortescue dropped 0.3%.

Qantas shares fell by 6.8% even as it announced a A$1 billion half-year profit and a share buyback of up to $500 million.

Shares in Platinum Asset Management plunged 17% after the fund manager's net profits fell 37%, to A$37.6 million.

Healthcare and communication services were among the winners on the local bourse. Healthcare provider Ramsay Health's share price jumped 3% as the company lifted dividends after a 22.3% profit increase in the aftermath of the pandemic.

ECONOMIC NEWS: The Australian Bureau of Statistics said on Thursday that private new capital expenditure was up a seasonally adjusted 2.2% on quarter at A$35.016 billion in the fourth quarter of 2022. That following the 0.6% contraction in the previous three months. On a yearly basis, building capex gained 3.8% and equipment capex rose 3.4%, and total capex was up 3.6%.

CURRENCY NEWS: The Australian dollar was stood at 0.6833 against greenback on Thursday, up 0.43% from previous trading day closure at 0.6803 after trading in the range of 0.6802-0.6841.

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