The Australian sharemarket has dipped as losses in retail and IT stocks outweighed gains in the healthcare sector. Investors also took profits from gold miners as the price of bullion broke through the $US4000 per ounce barrier for the first time.
The benchmark S&P/ASX 200 Index fell more than 30 points in early trading before pulling back in the afternoon to close down 9.2 points, or 0.1 per cent, with seven out of the 11 sectors in the red.
Wall Street traders sent stocks lower as enthusiasm about AI gave way to concerns about the sharemarket’s bull run being excessive, following the S&P 500’s $US16 trillion surge from its April lows. Australian investors also took stock of the Reserve Bank of New Zealand’s shock move to cut interest rates by 0.5 basis points to 2.5 per cent.
On the ASX, Bunnings owner Wesfarmers led the retail sector lower after falling 2.2 per cent to $88.29. JB Hi-Fi dropped 1.3 per cent to $114.42, Myer 2.1 per cent to 47¢, Eagers Automotive 2 per cent to $33.95, and Aristocrat 1.3 per cent to $68.06.
“Consumer discretionary stocks have taken a breather … despite last week’s household spending indicator and house price data indicating the consumer is still very healthy,” said UBS executive director Michelle Chinnery.
“Debate continues with equity investors as to whether this rate cut cycle is already over – this could help explain some of the softness in the consumer names.”
Gold cracked a fresh record after briefly rising above $US4000 an ounce, as the US shutdown dragged on and a wobble in tech stocks reinforced investor appetite for other assets. This prompted investors to take profits from gold miners, with Vault Minerals down 1.4 per cent to 73¢, Perseus 1.2 per cent to $4.91, and Greatland 1.1 per cent to $8.26.
Tech stocks also fell, tracking losses in New York. Life360 sank 3 per cent to $53.19, NextDC 2.1 per cent to $16.51, and Xero 1.7 per cent to $154.79.
“The tech sector was weighed down by negative US leads as investor concerns around Oracle’s profitability pressured sentiment across the space,” said Wilson Asset Management senior investment analyst Hailey Kim.
Mesoblast rallied 9.4 per cent to $2.92 to lead the health sector higher a day after reporting that US revenues for Ryoncil, its therapy to treat children for complications that could occur during bone marrow transplants, had increased by 66 per cent in the September quarter. ResMed jumped 2 per cent to $43 and Telix Pharmaceuticals 1.6 per cent to $15.41, while Pro Medicus, Sigma and Cochlear all edged higher.
Stocks on the move
James Hardie surged 9.9 per cent to $33.24 on the back of reporting preliminary net sales for the second quarter that beat the average analyst estimate. The dual-listed building materials company also jumped 8.1 per cent in New York.
Apiam Animal Health jumped 6.7 per cent to 80¢ on news that private equity firm Adamantem has completed its due diligence, after it lobbed a non-binding indicative offer for the ASX-listed rural veterinary service provider in August.
DroneShield gained 7.8 per cent to $6.53 after announcing it had made software improvements that would allow its systems to detect and respond to drones faster and more accurately.
Healius fell 1.8 per cent to 80¢ despite poaching BIS Industries CFO Andrew Thomson to replace the outgoing Steve Humphries.
NRW rose 3 per cent to $4.76 after the construction and mining contractor upgraded its full-year guidance and announced the completion of its $200 million acquisition of Sydney-based electrical and technology contractor Fredon Industries.
And Catalyst Metals slumped 1.8 per cent to $7.46 after reporting that its September gold production came in lower than expected.
That’s a wrap on today’s news. Join us again soon for more live markets news.