Australia Market tumbles to 3-month low

Australia stock market closed session at a three-month low on Monday, 26 September 2022, joining global selloff, amid mounting worries of possible global recession after central banks ramped up interest rates to combat inflation.

The market reflected a broader weakness, as investors continued to reposition themselves amid fears of an economic slowdown, after the Federal Reserve's decision last Wednesday to again lift borrowing costs by 75 basis points was followed by a warning that more big rises were in the pipeline. There were similar moves by central banks in other countries, including Britain, Sweden, Norway, Switzerland, the Philippines and Indonesia - all pointing to a dark outlook for markets.

At closing bell, the benchmark S&P/ASX200 index retreated 105.32 points, or 1.6%, to 6,469.41. The broader All Ordinaries index declined steep 121.22 points, or 1.79%, to 6,667.49.

Total 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Energy sector was the worst performer, falling 6.3%, followed by materials (down 5.3%) and utilities (down 3.4%). Healthcare was the best performing sector, gaining 2%

The top performing stocks in S&P/ASX200 index were NANOSONIC and MEGAPORT, up 4.7% and 3.6% respectively. The bottom performing stocks in S&P/ASX200 index were NEW HOPE CORPORATION and COSTA GROUP HOLDINGS, down 14.69% and 14.17% respectively.

Energy stocks were the top laggards, with oil and gas majors Woodside Energy and Santos slipping 5.2% and 4.7% respectively.

Materials were lower, with BHP and Rio Tinto dropping more than 3% each. Weak bullion prices dragged the gold miner lower, with Newcrest Mining slipping 3.2%.

In company news, Shares of Link Administration tumbled 6.7% after its US$1.6b buyout by Canada's Dye & Durham fell through on Friday.

Fruit grower Costa Group tumbled 11.8% after Sean Hallahan stepped down as chief executive officer and managing director.

CURRENCY NEWS: Australia's dollar strengthened slightly to $0.6532.

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