Equity investors kept a pensive mood for the first session of the new month with losses for a number of banking, technology and consumer stocks, sending the local bourse to a second narrow loss.
The benchmark ASX 200 went into the weekend down 5.8 points, or 0.1 per pent, to 7493.8 after falling a similar amount in the previous session.
The index still managed to end the week 1.2 percent higher — a third week of gains — and still hovers near multi-month highs after a sharp March rally that pulled it 6.4 percent higher.
The broader All Ordinaries ended the week down 3.7 points, or 0.05 percent, at 7785.9 and the Aussie dollar slipped to 74.75 cents by the local close.
camera iconBHP neared its peak on Friday, rising 1.2 percent to $52.39, while Rio rose 1 percent to $120.34 and Fortescue rose 1.9 percent to $21.06. NCA NewsWire / Jeremy Piper Photo credit: News Corp Australia
Futures markets had shown a sharper drop for local stocks after a weak overnight session in the US, although OANDA analyst Jeffrey Halley said the quarter-end flows may have clouded the waters a bit.
However, he noted that investors continued to face a number of competing headwinds – not least developments from Covid-plagued China, where the economy has been slowing.
“The problem of property developer leverage has gone quiet but not resolved… its Covid-zero policy is also becoming a bit more challenging as Shanghai’s lockdowns tightened overnight,” Mr Halley said.
He also said investors would likely wait for a read of US nonfarm payrolls data for answers on whether the Federal Reserve will truly be forced to embark on a stronger-than-expected cycle of rate hikes.
Furthermore, rising global interest rates and rising food and energy prices, which were re-ignited by the invasion of Ukraine, may not yet have their full impact.
camera iconThe ASX 200 still managed to end the week 1.2 percent higher — a third week of gains — and is still hovering near multi-month highs after a stormy March rally that pulled it 6.4 percent higher . NCA NewsWire / Jeremy Piper Photo credit: News Corp Australia
“(They) will not go away anytime soon, even if this war ended tomorrow,” wrote Mr. Halley.
“The first data out of Asia encompassing the Ukraine war doesn’t make for comforting reading today.”
On the local shores, mining giants BHP, Rio Tinto and Fortescue Metals again bolstered the index after iron ore prices moved higher again.
BHP neared its peak on Friday, rising 1.2 percent to $52.39, while Rio rose 1 percent to $120.34 and Fortescue rose 1.9 percent to $21.06.
Lithium stocks were also strong.
Mineral Resources was up 3.6% to $54.59, IGO was up 2.5% to $14.41, Pilbara Minerals was up 7.2% to $3.43, Vulcan Energy was up 5% at 10, $66, Allkem was up 8.5% to $12.40, Liontown Resources was up 3.5% to $1.945 and Novonix closed 3.4 percent higher at $6.41.
camera iconOn the local shores, mining giants BHP, Rio Tinto and Fortescue Metals again bolstered the index after iron ore prices moved higher again. Credit: Delivered
Coal miners Whitehaven, New Hope, Yancoal and Coronado rose, but gold stocks were mixed.
Energy companies gained even as crude prices fell 5.4 percent to $107.29. Woodside Petroleum was up 1.8% to $32.68, Santos was up 2.1% to $7.90 and Origin Energy was up 2.6% to $6.39.
Losses for Commonwealth Bank, ANZ, NAB and Westpac weighed heavily, with fund managers Magellan, Pendal, Challenger, Platinum and Perpetual also falling.
Elsewhere, afterpay owner Block Inc fell another 2.6 percent to $180.50 and accounting software company Xero fell 1.7 percent to $101.04.
Healthcare giant CSL was down 0.7 percent to $266.28, while Bunnings owner Wesfarmers fell 1.6 percent to $49.59.
Strong falls from Pointsbet, Dominos Pizza, Aristocrat Leisure, Harvey Norman, Breville and Premier Investments rounded out a miserable day for consumer discretionary.
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