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Highlights
- ASX 200 finished the financial year laggard, closing 1.97% lower.
- Utilities, energy, and materials lead losses, taking large-cap stock prices down.
- Chinese peers ended the day higher, while Japanese and Korean markets fell.
The Australian markets saw a lousy end to the financial year. Australian index ASX 200 closed 1.97% lower today, ending the financial year 10.2% lower.
The day’s losses were led by utilities, energy, and material stocks, with least drops recorded in telecommunications and industrials. The worst hit stocks on the index were Tyro Payments Limited (ASX:TYR) down over 7%, and Unibail-Rodamco-Westfield (ASX:URW), losing 6.00%. The top performer was PointsBet Holdings Limited (ASX:PBH), which gained over 10%.
Market movers
- Gaming and betting business PointsBet (ASX:PBH) shares surged over 10.7% while no other stock registered double digit gains. The entertainment business remained immune to today’s market slump.
- HRL Holdings Limited (ASX:HRL) from the healthcare sector, gained 6.67% after announcing a takeover offer received from industry biggie ALS Limited (ASX:ALQ). HRL Holdings’ directors were favouring offer acceptance in absence of a better deal.
- Aligning to the broader market trend, material sector stocks crashed down. Giants like Fortescue Metals Group Limited (ASX:FMG) lost 4.73%, BHP Group Limited (ASX:BHP) lost 3.53% and Rio Tinto (ASX:RIO) fell 3.32%.
- Energy stocks also plunged alongside the ASX 200 index. Beach Energy Limited (ASX:BPT) lost 3.63% and Santos Limited (ASX:STO) shed 1.59%. AGL Energy made news on Brookfield acquiring 2.56% stake. AGL shares faded 1.67% despite this news.
- The big four banks declined as reduced long-term borrowing costs cut margin opportunities. Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation (ASX:WBC), Australia and New Zealand Banking Group Limited (ASX:ANZ) and National Australia Bank Limited (ASX:NAB) lost over 2%.
Other noteworthy trends
Market Volatility indicator- A-VIX was up 4.231%. Meanwhile All-Ordinaries index followed the ASX 200 losing 1.425%. Large cap stocks symbolised by ASX 50 index (XFL) lost over 1.508% and Midcap index ASX Midcap 50 (XMD) dropped 0.996%. ASX Small Ordinaries index (XSO) also closed 1.284% lower.
Top gainers and losers
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Global market trend
In the US, equities painted a mixed picture overnight. While telecom, healthcare and technology stocks gained, oil & gas, basic materials and industrials lost shine. By market close, Dow Jones Industrial Average was higher, while the S&P 500 index moved down. The NASDAQ Composite index also registered a loss.
Meanwhile US Fed’s Chair Jerome Powell and his peers from Europe warned of a long-lasting inflation during the European Central Bank (ECB)’s annual forum organised in Portugal. In Asia Pacific, China’s factory output expanded and Covid curbs were eased in top cities like Shanghai.
In Asian markets, Japan’s Nikkei closed lower along with South Korean KOSPI. Meanwhile, Hong Kong's Hang Seng, China’s Shanghai Composite and Shenzhen Component closed higher.
On commodities front
- Gold was down, falling for a third consecutive month. Investors assessed the yellow metal alongside worries of major central banks adopting aggressive inflation curbing policies.
- In other precious metals, silver also lost shine, while platinum and palladium prices climbed up.
- Concerns of global supply shortage pushed oil prices, making both Brent and WTI gain. Further disruptions in oil producing states Libya and Ecuador supported the price hike oil prices. However, concerns of recession also weighed on the black liquid’s prices.
- In the dynamic world of cryptocurrency, Bitcoin tumbled again, moving below US$20,000 by noon. Traders seemed worried about profitability of Bitcoin miners as prices plummeted. Other cryptos like Ethereum, Cardano and Solana also traded lower.
