Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Australian shares moved slightly lower as technology and real estate stocks came under pressure, offsetting gains in the energy sector. The S&P/ASX 200 declined 0.2%, with technology stocks recording the sharpest fall among major sectors. Real estate stocks also slipped to their lowest level since mid-April. The market was also responding to weaker employment data, which reduced expectations of another interest rate hike but did not provide much support to retail spending or home-loan demand. Energy stocks continued their recent gains, while mining stocks were affected by weaker iron ore and copper prices.
Australian shares edged lower on Friday as declines in technology and real estate stocks weighed on the broader market, while gains in energy stocks helped limit the fall. Investors were also assessing a series of corporate earnings reports and the impact of recent economic data on interest rate expectations. The S&P/ASX 200 index fell 0.2% to 9,067 points in early trading. The benchmark had gained 0.3% in the previous session.
Technology stocks were the biggest drag on the index, with the sector sub-index falling as much as 1.5% as Australian technology companies followed weakness among their US counterparts. Shares of Wisetech Global declined as much as 3.3%, while NEXTDC fell up to 2.5%.
Real estate stocks also remained under pressure. The sector fell as much as 2.1%, reaching its lowest level since mid-April. Consumer discretionary stocks declined as much as 1.2%, adding to the pressure on the broader market.
The market was also factoring in weaker employment conditions. Australian jobs data released in the previous session showed an unexpected decline in employment in July, while the unemployment rate reached its highest level since late 2021. The weaker labour market reduced pressure on the Reserve Bank of Australia to consider another interest rate increase.
However, the softer employment figures did not provide much support to retail spending or home-loan applications, both of which are important indicators for the banking sector and the broader housing market.
Banking stocks recovered from earlier losses and rose as much as 0.3%. The four major Australian banks gained between 0.05% and 0.9%.
Energy stocks provided some support to the market, rising as much as 1.8% to their highest level since mid-April. The sector was on track for a fifth consecutive session of gains, supported by higher oil prices.
Mining stocks, meanwhile, fell as much as 0.6% as weaker iron ore and copper prices affected sentiment. BHP Group declined as much as 1% and Fortescue fell up to 0.3%, while Rio Tinto gained as much as 1.3%.
Among individual companies, Guzman Y Gomez was one of the stronger performers. Its shares surged as much as 12.6% to near a one-year high after the Mexican-inspired fast-food chain reported a 29.7% increase in annual profit. In New Zealand, the benchmark S&P/NZX 50 index was broadly unchanged at 13,917.53 points.
Source Reuters
Advertisement
Facebook
Whatsapp
