2023-06-26 01:20:51
Australian stocks hit their lowest level in nearly three months on Monday, dragged down by losses in banking and mining stocks, as cautious investors await crucial local economic indicators, including inflation data, this week.
The S&P/ASX 200 index fell 0.4% to 7073.1 at 0043 GMT, its lowest level since March 30. The benchmark index closed down 1.3% on Friday.
Federal Reserve Chairman Jerome Powell, in testimony before US lawmakers last week, suggested the central bank had not reached the end of its tightening cycle, while reassuring that the Federal Reserve would proceed with caution.
In Sydney, mining companies lost around 1%, with iron ore giant BHP Group leading the loss. Shares of Rio Tinto and Fortescue Metals fell 1.3% and 0.9% respectively.
Financial stocks fell 0.3%, with the big four banks in the red. The Commonwealth Bank of Australia fell 0.7%.
Tech stocks were flat with Xero and Megaport losing 0.1% and 3.4% respectively.
Healthcare stocks lost 0.4%, following the general gloomy mood.
Gold stocks, however, limited the benchmark’s losses, rising 1.1% on bullion strength. Sub-index heavyweights Newcrest Mining and Northern Star Resources gained 1.2% each.
Metcash jumped 5.3% following the food retailer increased its annual dividend.
Perenti fell 10.4% following the diversified miner said it would buy out smaller rival DDH1 in a deal worth A$410 million ($273.84 million). Shares of DDH1 jumped 7%.
The Australian Pharmaceutical Industries unit of retail giant Wesfarmers will buy aesthetics company SILK Laser Australia for around A$180 million, the companies said. SILK rose 17.4% to AU$3.31.
Element 25 gained 20% following the battery metal producer struck a manganese sulfate supply deal with General Motors.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 fell 0.4% to 11,694.9.
($1 = AUD 1.4972) (Reporting by Rishav Chatterjee in Bengaluru; Writing by Rashmi Aich)
1687746605
#Mining #financials #drag #Australian #stocks #3month
