AUS
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GER
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Highlights
- ASX ends a five-day rally, led by losses across industrial stocks.
- Retail sales growth underwhelms expectations, adding to cautious sentiment.
- Star Entertainment (SGR) suffers a dramatic plunge, losing a third of its value.
The Australian stock market took a step back on Thursday, as the S&P/ASX 200 declined by 0.2%, or 19.9 points, to close at 8329.2. This marks the end of a five-day rally, with profit-taking across multiple sectors and mixed economic data influencing the session's outcome. The Australian dollar also softened, trading at US62.03¢.
Ten of the eleven sectors on the index reported losses, with industrial stocks leading the retreat. Profit-taking after Wednesday's gains weighed on the market in early trading. Additionally, retail sales data for November showed growth below economists' expectations, leading to a restrained outlook for consumer recovery.
Economic and Sector Updates
Core inflation in November dropped, providing some positive momentum to banking and mining stocks earlier in the week. However, on Thursday, major banks like Commonwealth Bank (ASX:CBA) and ANZ (ASX:ANZ) slid 0.6% and 0.5%, closing at $158.79 and $29.37, respectively. Mining heavyweight Fortescue (ASX:FMG) recovered 1.9%, closing at $17.91 after recent losses.
Energy stocks followed a drop in global oil prices but managed to pare some losses by the end of the session. Meanwhile, the utilities sector emerged as the sole gainer, supported by rising expectations of an interest rate cut in February. Origin Energy (ASX:ORG) rose by 1.2% to $11.13, while Mercury NZ (ASX:MCY) added 1.3%, closing at $5.37.
Corporate News Highlights
Star Entertainment (ASX:SGR) faced a devastating session, losing 33.3% to finish at 13¢. The company revealed critical financial concerns, with only $79 million left in cash while grappling with conditions tied to a $100 million loan facility.
Among gainers, Arcadium Lithium (ASX:ARD) surged 8% to $9.13, buoyed by approval from a US trade committee for its proposed acquisition by Rio Tinto. In contrast, Computershare (ASX:CPU) dropped 3.4% to $33.58 amid profit-taking following a strong two-month rally.
Lovisa (ASX:LOV) fell sharply by 10.5% to $26.75 after analysts expressed concerns over modest store growth. Similarly, Avita Medical (ASX:AVH) saw its shares decline by 13.1%, closing at $3.05, after acknowledging that it would miss revenue forecasts.
As caution grows in response to underwhelming retail figures and corporate setbacks, investors continue to monitor the broader market dynamics heading into 2024.
