ASX Market Softens Amid Property Sector Declines and Corporate Updates

December 04, 2024 05:22 PM AEDT | By Team Kalkine Media

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ASX Market Softens Amid Property Sector Declines and Corporate Updates — Image source: Shutterstock

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Highlights

ASX benchmark index dips amid property sector challenges and economic data.

(GMG) leads property sector decline after repricing block trade.

(PME) and (SGF) outperform with positive corporate updates.

The Australian share market experienced a decline on Wednesday, weighed down by property sector losses and underwhelming economic data. The benchmark S&P/ASX 200 Index fell 0.4% to close at 8462.6, marking a retreat after a record high on the previous day. Property stocks led the downturn, reflecting broader market sentiment.

The Australian dollar hit a four-month low after GDP data revealed slower-than-expected growth. The economy expanded by 0.3% in the third quarter, missing the 0.4% forecast. On an annual basis, growth reached 0.8%, below expectations of 1.1%. These figures underscored challenges in valuations and earnings for the equity market.

Property Sector Under Pressure

The property sector faced significant losses, driven by (ASX:GMG), which saw its shares decline 2.9% to $37.02. The drop followed a $1.9 billion block trade repricing. Fund managers hesitated at the initial pricing, prompting adjustments that impacted sentiment. Other property stocks followed suit, with (ASX:GPT) slipping 1.5% to $4.75 and (ASX:SGP) declining 1% to $5.23.

Corporate Highlights

Amid the broader decline, some companies delivered positive updates. (ASX:PME) rallied 1.8% to $261.24 after confirming that its founders, Dr. Sam Hupert and Anthony Hall, would refrain from further share sales in the near term. This announcement followed a busy trading session of 2 million shares on Tuesday.

In contrast, (ASX:TAH) dropped 1.8% to 54¢ after implementing a 10% workforce reduction in its wagering division as part of cost-cutting measures.

Vehicle leasing firm (ASX:SGF) rose 2.7% to $3.42 following an acquisition agreement with Pacific Equity Partners. The deal valued the company at $1.4 billion, marking the largest public-to-private acquisition of the year.

Mining giant (ASX:RIO) added 0.9% to $120.08 after forming a joint venture with Japan's Sumitomo Metal Mining. The agreement involves a $614 million investment for a 30% stake in the Winu copper-gold project in Western Australia, enhancing (ASX:RIO)’s position in the resources sector.

The Australian share market faced mixed movements, with property stocks leading losses while corporate updates provided pockets of strength. Key players like (ASX:GMG) and (ASX:PME) reflected contrasting trends, illustrating the diverse challenges and opportunities within the market landscape.

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