Australia Market edges down on mixed company profits, building approvals

Australia stock market finished session slightly lower on Monday, 04 March 2024, after mixed readings on company profits and building approvals, with losses in healthcare, materials and utilities shares overshadowed gains in tech companies and real estate investment trusts.

At closing bell, the benchmark S&P/ASX200 index was down 9.82 points, or 0.13%, to 7,735.79. The broader All Ordinaries index sank 10.64 points, or 0.13%, to 7,996.48.

Sectors ended mixed. Total 7 of 11 sectors were lower along with the S&P/ASX 200 Index. A-REIT was the best performing sector, gaining +1.45%, while healthcare was the worst performing sector, falling 0.78%.

The top performing stocks in S&P/ASX200 index were INSIGNIA FINANCIAL and BEGA CHEESE, up 13.72% and 12.96% respectively. The bottom performing stocks in S&P/ASX200 index were HEALIUS and PRO MEDICUS, down 3.85% and 3.56% respectively.

Shares of technology companies performed strongly, with WiseTech (up 1.4%) and TechnologyOne (up 0.8%) leading sectoral gains.

Real estate investment trusts shares outperformed the market, with Goodman Group rising 2.3%, meanwhile Scentre gained 1.9% and Charter Hall Group climbed 2%.

Shares in Boral (up 0.5%) and Seven Group (up 0.6%) closed higher after Seven made its offer to hoover up the 20% of Boral shares it doesnt yet own unconditional and slightly improved the payment terms for the concrete makers shareholders.

ECONOMIC NEWS: Company operating profits in Australia were up a seasonally adjusted 7.4% in quarter in the fourth quarter of 2023, the Australian Bureau of Statistics said on Monday. Wages and salaries were up 0.9% on quarter and 8% on year, while inventories fell 1.7% after adding 1.2% in the previous quarter. Inventories fell 0.6% on year. Manufacturing sales were up 0.6% on quarter and 1.5% on year, while wholesale sales fell 0.2% on quarter and 2.3% on year.

Australia Building Approvals Fall 1.0% In January-The total number of building approvals issued in Australia in January was down a seasonally adjusted 1.0 percent on month - coming in at 12,850. Private sector houses fell 9.9 percent to 7,461, while private sector dwellings excluding houses rose 19.5 percent to 5,238. The value of new residential building rose 19.4 percent to A$7.14 billion, while the value of non-residential building climbed 12.4 percent to A$4.92 billion.

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