AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Real estate and utilities sectors weigh down Australian market performance.
- Pro Medicus (PME) sees a positive rally amid founder announcements.
- Major corporate developments boost SG Fleet (SGF) and Rio Tinto (RIO).
Australian shares declined in midday trading as property and utilities stocks faced challenges. The benchmark S&P/ASX 200 Index fell by 0.5%, losing momentum after Tuesday's record close. The mixed performance on Wall Street and economic concerns added to the market’s subdued tone.
Real Estate and Utilities Lead Declines
The real estate sector was the day’s weakest performer, driven by significant losses among major players. Goodman Group (ASX:GMG) saw its shares slide by 4%, while Scentre Group (ASX:SCG), the parent company of Westfield, dropped 2.4%. Stockland (ASX:SGP) recorded a 1.6% decline, compounding the sector’s overall downturn.
Utilities stocks also faced pressure, with APA Group (ASX:APA) shares dipping by 2.9%. Meanwhile, Origin Energy (ASX:ORG) slipped by 1%, further contributing to the market’s downward trend.
Broader Economic and Global Context
Australia’s GDP growth for the third quarter came in below expectations, increasing by 0.3% on a seasonally adjusted basis. This fell short of market predictions of 0.4%, while year-on-year growth stood at 0.8%, trailing the 1.1% forecast.
On the international front, the S&P 500 reached its 55th record high this year, with Nasdaq leading gains as Apple extended its rally. Meanwhile, South Korean assets experienced turbulence after political developments led to investor concerns, which eased following the reversal of martial law decrees.
In commodities, Bitcoin edged lower by 0.6% to $95,471, while Brent Crude jumped 2.5% to $73.60 per barrel. Iron ore prices also climbed to $105.10 per tonne.
Corporate Developments: Pro Medicus and SG Fleet Rally
Pro Medicus (ASX:PME) shares rallied 3.4% after the company’s founders announced they do not intend to sell additional shares in the near term. This followed the trading of approximately 2 million shares after Tuesday's market close. The company revealed that several institutions had approached its founders with purchase requests.
Vehicle leasing company SG Fleet (ASX:SGF) gained 3.3% after Pacific Equity Partners finalized terms to acquire the business. The deal, valued at $1.4 billion, represents the largest public-to-private acquisition in the Australian market this year.
Rio Tinto Expands Copper-Gold Ventures
Rio Tinto (ASX:RIO) announced a joint venture with Japan’s Sumitomo Metal Mining (SMM) to develop the Winu copper-gold project in Western Australia. SMM has acquired a 30% stake in the project for $614 million. Rio’s shares rose 0.5% following the announcement.
This mix of sector pressures and corporate activity underscores the diverse factors influencing the Australian market.
