Australia Market falls on global recession

Australia stock market finished in negative territory for third straight session on Monday, 19 December 2022, as investors wrestled with fears that interest rate hikes from central banks around the world would causes potential recessions.

Wall Street fell Friday after the Fed raised its forecast of how long interest rates have to stay elevated to cool inflation that is near a four- decade high. The European Central Bank warned more rate hikes are coming.

At closing bell, the benchmark S&P/ASX200 index was down 14.81 points, or 0.21%, to 7,133.87. The broader All Ordinaries index fell 15.55 points, or 0.21%, to 7,320.98.

Total 9 of 11 sectors were lower along with the S&P/ASX 200 Index. A-REIT was worst performing sector, declining 1.1%, followed by industrials (down 0.88%), healthcare (down 0.84%), and utilities (down 0.75%). Energy was the best performing sector, gaining +0.52%, followd by materials (up 0.45%).

The top performing stocks in S&P/ASX200 index were NICKEL INDUSTRIES and UNITED MALT GROUP, up 4.8% and 4.5% respectively. The bottom performing stocks in S&P/ASX200 index were THE STAR ENTERTAINMENT GROUP and IMUGENE, down 17.83% and 9.09% respectively.

Financials were lower, with three of the four big banks down at market close. ANZ closed in the green, but NAB fared the worst, down 0.5 per cent.

Shares of materials and energy companies advanced. Heavyweight miners BHP and Fortescue Metals jumped 0.7% and 0.5%, respectively. Energy giant Woodside also inched up 0.4%, while Hope Corporation added 4% and Contact Energy rose 6.6%.

Shares of Warrego Energy jumped over 8% to 32 cents after the Perth-based gas explorer received a new all-scrip offer from joint venture partner Strike Energy. The latest offer trumps the one put on the table for Warrego by Gina Rinehart's Hancock Energy.

Among individual movers, Casino operator Star Entertainment Group plummeted 17.8% after the company said it was urgently seeking to discuss proposed gaming tax increases (beginning in 2023) with the NSW government.

CURRENCY NEWS: The Australian dollar was stood at 0.6729 against greenback on Friday, depreciated by 0.67% from Friday's close of 0.6684, after trading in the range of 0.6683-0.6733.

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