Australia Market tumbles 1.06%

Australia stock market finished session lower on Wednesday, 15 February 2023, on tracking soft lead from Wall Street overnight, amid renewed concerns that the U.S. Federal Reserve will continue to raise interest rates for a long period after higher-than-expected U.S. inflation data

At closing bell, the benchmark S&P/ASX200 index was down 78.65 points, or 1.06%, to 7,352.21. The broader All Ordinaries index fell 69.49 points, or 0.91%, to 7,559.11.

Total 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Financial was the worst performing sector, falling 3.4%, followed by consumer staples (down 1.36%), and energy (down 0.88%). Utilities was the best performing sector, gaining 1.12%.

The top performing stocks in S&P/ASX200 index were THE STAR ENTERTAINMENT and GUD HOLDINGS, up 14.4% and 8.1% respectively. The bottom performing stocks in S&P/ASX200 index were BRAINCHIP HOLDINGS and CORPORATE TRAVEL MANAGEMENT, down 13.56% and 8.70% respectively.

Shares of financial sector tumbled the most, with CBA, ANZ and NAB each losing more than 3% amid concerns that the bank's profit margins may have peaked. Commonwealth Bank of Australia slumped up to 5.7% after flagging tailwinds from inflationary pressures, rising rates, supply chain disruptions. It saw loan impairment expenses increasing by A$586 million in the half year.

Materials were mixed. Mining heavyweights Rio Tinto and BHP ended the day in the green, up 1.5% and 0.5%, respectively, while Fortescue's share price fell 0.8% after the company announced a 15% hit to its half-year profits and a scale-back on dividends.

Shares of Building materials maker James Hardie rose 2% on plans to cut 6% of its global workforce in a cost clamp-down to bolster its results amid rising interest rates.

Healthcare manufacturer Cochlear was up 7.75% after the company announced a buyback of least $75 million of its shares, commencing in March.

CURRENCY NEWS: The Australian dollar was stood at 0.6914 against greenback on Wednesday, down by 1% from previous trading day closure at 0.6985 after trading in the range of 0.6907-0.6990.

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