Australia Market falls 2.1%

The Australian share market finished session steep lower on Monday, 20 September 2021, due to losses across the board, with shares in materials, energy, and financials being notable losers. At closing bell, the benchmark S&P/ASX200 stumbled 155.55 points, or 2.1%, to 7,248.17. The broader All Ordinaries dropped 165.04 points, or 2.14%, to 7,537.89.

Total 10 of 11 sectors were lower along with the S&P/ASX 200 Index. Materials was the worst performing sector, losing 3.7%, followed by energy (down 3%), information technology (down 2.8%), financials (down 2.2%), and consumer discretionary (down 1.8%) sectors.

The bottom performing stocks in this index were CHAMPION IRON and LYNAS RARE EARTHS, down 12.3% and 11.8% respectively. The top performing stocks in this index were AUSNET and ENDEAVOUR GROUP, up 19.2% and 2.2% respectively.

Shares of materials and resources were hit hardest, as iron ore price continued its slump to below the $US100 /tonne mark over the weekend, with futures in Singapore dropping as much as 12 per cent on Monday. Fortescue Metals (FMG) ended down 3.7% with BHP Group (BHP) dropping 4.2% and Rio Tinto (RIO) declining 3.6%. Champion Iron (CIA) was the worst slumping 12.3%.

Shares of electricity grid owner, AusNet jumped 19% on the back of a proposed takeover offer from private equity firm Brookfield Asset Management. The improved takeover offer is for $2.50 per share after the company had previously offered $2.35 and $2.45 per share offers in August.

Energy stocks fell on tracking lower crude oil prices, as more supply came back online in the U.S. Gulf of Mexico following two hurricanes. Whitehaven Coal and Beach Energy led losses, skidding 6.8% and 3.2%, respectively.

CURRENCY NEWS: The Australian dollar traded at $0.7239, following its slip from above $0.736 last week.

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