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Highlights
- Australian markets ended a five-day rally as retail sales data raises rate concerns.
- Energy, mining, and banking sectors led the decline amid falling oil prices.
- Star Entertainment (SGR) saw a steep decline due to cash flow concerns.
Australian shares ended their five-day winning streak on Thursday, with investors taking a cautious stance ahead of anticipated retail sales growth figures. The S&P/ASX 200 fell by 0.6% (49.1 points), opening at 8,300 points, while the All Ordinaries also dropped by 0.6%. The Australian dollar followed suit, declining 0.4% to trade at US62.13¢.
Broad market declines saw 10 out of the 11 main sectors falling, with energy stocks leading losses, triggered by a drop in oil prices. Concerns over upcoming retail sales growth added to market jitters, suggesting the possibility of delayed monetary policy easing. Economists project retail sales will grow by 1% in November, supported by record Black Friday shopping—potentially marking the biggest monthly increase since February.
On the global front, muted performance in the U.S. markets failed to provide support. The Federal Reserve's meeting minutes highlighted concerns about stalled progress in taming inflation. This cautious sentiment influenced local markets as well.
Sector Performance
Energy stocks faced significant pressure as oil prices fell. Woodside Energy (ASX:WDS) declined by 1.3%, while Santos (ASX:STO) lost 0.6%. Heavyweight mining stocks also reversed their Wednesday gains, with BHP (ASX:BHP) slipping by 0.8% and Rio Tinto (ASX:RIO) dropping by 0.3%. In the financial sector, Commonwealth Bank (ASX:CBA) shed 0.9%, following a strong 1% gain the previous session.
Bitcoin saw a decline in the cryptocurrency market, dropping 2.2% overnight to its lowest level since the start of the year at $94,304.
Corporate Highlights
In corporate news, Star Entertainment (ASX:SGR) plummeted by 25.6%. The company revealed it had only $79 million in cash reserves—significantly less than its recent three-month expenditure. Challenges meeting the conditions of a $100 million loan facility further fueled investor concerns.
Mining services provider Macmahon Holdings (ASX:MAH) bucked the market trend, rising 1.5% after securing a $463 million contract from Indonesian firm Indika Energy.
In contrast, Avita Medical (ASX:AVH) continued to slide, with its shares losing nearly a third of their value since Wednesday morning. Investors reacted to the company's disclosure that it would fall short of revenue forecasts.
The Australian markets face near-term volatility as global economic signals and domestic retail sales data shape investor sentiment.
