Australia Market falls on profit booking

The Australian share market finished session lower on Thursday, 31 March 2022, snapping seven days winning streak, as investors opted to secure recent profit on concerns over the Russia-Ukraine crisis after hopes of a negotiated resolution to the Russia-Ukraine war were quickly diminished on news of Moscow's bombardment in the outskirts of Kyiv.

Markets sentiment was also dampened amidst a drop in China's PMI readings and speculation that the U.S. central bank may follow an aggressive approach in hiking interest rates, as it looks to control stubborn inflation.

At closing bell, the benchmark S&P/ASX200 dropped by 14.93 points, or 0.2%, to 7,499.59. The broader All Ordinaries index fell 10.37 points, or 0.13%, to 7,789.57.

Retailer Harvey Norman Holdings was the greatest laggard with a more than 6% decline as its shares traded without the right to the latest dividend. Capital goods business Reece, software business Xero, retail business Premier Investments, all declined more than 4%. Pharmaceutical company Imugene dropped more than 3%.

Bucking the trend, Novonix led gainer with a rally of close to 10%, amidst expectations that the electric vehicle segment would keep the lithium prices high. Champion Iron added 5%. Mineral Resources, Fortescue Metals Group, telecommunications service TPG Telcom, all gained more than 4%.

ECONOMIC NEWS: Australia Private Sector Credit Up 0.6% On Month In February- Australia private sector credit was up 0.6% on month in February, the Reserve Bank of Australia said on Thursday, unchanged from the January reading. Housing credit also rose 0.6% on month, while personal credit was flat and business credit gained 0.8%. On a yearly basis, overall credit jumped 7.9%, accelerating from 7.6% in the previous month.

Australia Building Permits Surge In February- Australia total number of building permits surged a seasonally adjusted 43.5% on month in February, the Australian Bureau of Statistics said on Thursday, coming in at 18,675, following the 27.9% contraction in January. Approvals for private sector houses jumped 16.5% in March to 10,240, while approvals for private sector dwellings excluding houses skyrocketed 78.3%. On a yearly basis, house permits dropped 27.4%, non-house permits jumped 25.5% and overall permits shed 7.8%.

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