Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Australian shares ended almost unchanged at the close of trade, wrapping up a volatile week as investors assessed the impact of proposed housing-tax reforms and global economic uncertainties. Concerns around changes to negative gearing and investor lending weighed on the outlook for banks and mortgage growth, while developments in U.S.-China relations and tensions in the Middle East kept markets cautious. Financial and real estate stocks managed gains, but weakness in mining shares due to softer commodity prices limited broader market movement. Investors are now watching upcoming employment data for further clues on interest-rate direction.
Australian shares closed largely flat at the end of the trading session, as uncertainty around housing-related tax proposals and global economic developments kept investor sentiment cautious through the week. Advertisement
The S&P/ASX 200 slipped 0.1% to close at 8,630.8 points. The benchmark index also recorded a weekly decline of 1.2%, marking its weakest weekly performance in more than three weeks.
Investor attention remained focused on the Australian federal budget announced earlier this week, which proposed limiting negative gearing benefits to encourage investment in newly built homes. The move raised concerns in the banking sector over the possibility of slower mortgage demand and softer investor lending activity.
Financial stocks recovered from sharp losses seen earlier in the week and ended the session 1% higher. However, the sector still recorded a weekly decline of 4.3%, its weakest run in over six months.
Among lenders, Commonwealth Bank of Australia gained 1.9% after witnessing heavy selling pressure earlier in the week. Market analysts said the rebound was mainly driven by bargain buying after recent declines rather than renewed confidence in the sector’s outlook.
Marc Jocum, senior product and investment strategist at GlobalXETFs.com.au, said the outlook for banks remained uncertain due to proposed housing and lending policy changes. He added that rising loan arrears and higher provisions suggested that the banking sector’s strong profit cycle could be slowing, with upcoming August earnings expected to become an important test for the industry.
Real estate stocks continued their upward movement, with the sector index rising 0.4% during the session and ending the week 1.5% higher. Investors reacted positively to measures aimed at supporting first-home buyers, which could help improve housing demand in the coming months.
Global developments also remained in focus for the Australian market. Investors closely tracked discussions between the United States and China, Australia’s key trading partners, as any improvement in ties could support demand for commodities and benefit the country’s mining-heavy market.
Mining shares, however, came under pressure after weaker iron ore and copper prices weighed on sentiment. The mining index fell 3.1% during the session, although it still managed to post a weekly gain of 1.7%.
Major miners BHP and Rio Tinto declined 2.6% and 3.2%, respectively, after touching record highs in recent trading sessions.
Market participants are now looking ahead to next week’s employment data, which is expected to provide fresh direction on the central bank’s interest-rate outlook and broader economic conditions.
In New Zealand, the S&P/NZX 50 index declined 0.5% and extended its losing streak to four consecutive sessions. The benchmark index ended the week down 1.6%.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
