Australia Market falls on profit booking

The Australian share market finished session lower on Wednesday, 12 August 2020, as investors elected to book recent profit after data showed wages grew at their slowest pace on record in the second quarter, while a measure of consumer sentiment fell sharply in August. Also, weighed on sentiments were renewed pessimism about a U.S. new pandemic aid bill after Republican Senate leader Mitch McConnell poured cold water on prospects for a deal

At closing bell, the benchmark S&P/ASX200 index fell 6.60 points, or 0.11%, to 6,132.05. The broader All Ordinaries was down 15.12 points, or 0.24%, to 6,256.99.

Shares of heavyweight miners BHP Group, Fortescue Metals Group and Rio Tinto fell between 0.7% and 1.4% after iron ore prices slumped.

 

The gold stocks dropped, as prices of the yellow metal continued to fall against a resurgent dollar, with the country's largest-listed gold miner Newcrest Mining tumbling 3.2%.

Three of the other big four banks - Westpac Banking , National Australia Bank and Australia and New Zealand Banking Group - rose between 2% and 2.3%. Commonwealth Bank of Australia fell 0.5% after Australia's largest lender slashed its annual dividend by more than half, even as its full-year cash profit fell 11%.

ECONOMIC NEWS: Australia Wage Prices Up 1.8% On Year In Q2- Australia wage prices were up 1.8% on year in the second quarter of 2020, the Australian Bureau of Statistics said on Wednesday, down from 2.1% in the three months prior. On a seasonally adjusted quarterly basis, wage prices rose 0.2%, down from 0.5% in the previous three months. Private sector wages gained 0.1% on quarter and 1.7% on year, while public sector wages climbed 0.6% on quarter and 2.1% on year.

Australian consumer sentiment sinks- A measure of Australian consumer sentiment fell sharply in August as a strict coronavirus lockdown in Victoria state darkened the mood in a major setback to the country's fledgling economic recovery. The Westpac-Melbourne Institute index of consumer sentiment sank 9.5% in August from July, when it dropped 6.1%. The retreat almost took the index back to its nadir in April when the whole nation was in lockdown. The index was also down a hefty 20.4% on August last year at 79.5, meaning pessimists outnumbered optimists by a large margin.

CURRENCY NEWS: The Australian dollar changed hands at 0.7127, declining slightly.

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