Australian shares hobble out month with minuscule gains
The Australian share market has limped towards the end of a tough week for the stock market as stock-specific shocks and a hot inflation report weighed on sentiment.
The S&PASX200 fell 3.6 points, or 0.04 percent, to 8,881.9 points on Friday, while the All Ordinaries index lost 0.9 points, or 0.01 percent, to 9,178.
The local market underperformed most of its peers in October, posting a gain of about 0.5 percent as Japan’s Nikkei and South Korea’s KOSPI posted double-digit gains and Wall Street’s S&P500 and Nasdaq rose to record highs.
“It’s a pretty dismal performance given what’s going on in the rest of the world,” IG Markets analyst Tony Sycamore told AAP.
Consumer discretionary and real estate stocks are down more than 4.5 percent this week as investors repriced rate cut expectations following warmer-than-expected September quarter inflation numbers.
“A number of these interest rate-sensitive stocks have moved higher in search of further rate cuts, and I see that as a real headwind at this point for many of the sectors like real estate, consumer-facing stocks and so on,” Mr. Sycamore said.
“I’m still deciding on a more neutral monetary environment, but that won’t happen next week.”
Seven of 11 domestic sectors improved on Friday, led by energy and communications stocks, while financial data and raw materials also provided support, with gold stocks recovering.
Northern Star, Evolution and Newmont gained more than three per cent after spot gold jumped, but the precious metal fell back below US$4000 ($A6,110) an ounce at the ASX close on Friday.
Iron ore giants Rio Tinto, BHP and Fortescue softened in the last session but maintained gains throughout the week thanks to strength in iron ore and copper prices.
Rare earth and critical mineral producers Lynas, Iluka and Liontown Resources have secured a bid to round out a volatile fortnight for their segments, where trade agreements, rumors and commodity price forecasts have triggered wild price movements.
The big four banks showed a mixed outlook on Friday, while Westpac and CBA were bullish. NAB traded flat and ANZ lost 0.6 per cent after announcing second-half earnings fell by more than $1 billion on several key items.
More broadly, the sector managed to post a 0.15 per cent gain during the week despite changing investor sentiment.
Turning to insurers, broker Steadfast fell almost 10 per cent after announcing boss Robert Kelly would stand aside pending an external investigation into a workplace complaint against him.
Energy stocks outperformed the stock market, rising 0.6 percent and 1.4 percent during the week, supported by Woodside and uranium producers after the United States announced plans to expand its nuclear capacity.
The healthcare sector has lost more than eight per cent of its value since Monday after investors dumped CSL shares to near seven-year lows following its second profit warning in as many months.
Mayne Pharma fell by nearly a third on Friday after federal Treasurer Jim Chalmers said he would block a $672 million takeover bid for the company by US pharmaceutical giant Cosette, citing risks to the economy.
Utility shares fell 1.1 per cent at the weekend, suffering an even bigger drop in price after Origin’s quarterly update failed to impress.
The Australian dollar is buying 65.41 US cents at 65.92 US cents at 5pm on Thursday.
ON ASX:
* S&P/ASX200 fell 3.6 points or 0.04 percent to 8,881.9 points
* More broadly, All Ordinaries lost 0.9 points, or 0.01 percent, to 9,178
CURRENCY DISPLAY:
One Australian dollar is traded as follows:
*65.41 US cents, down from 65.92 US cents on Thursday
* From 100.88 JPY to 100.68 JPY
* 56.54 euro cents from 56.70 euro cents
* 49.74 British pence, from 49.89 British pence
* 114.28 New Zealand cents from 113.98 New Zealand cents
