ASX finishes lower, as market readies for local rate hikes
Last updated: 4:50pm AEST
Australian shares closed lower, as the market braces for a steep interest rate rise tomorrow when the Reserve Bank of Australia (RBA) meets.
The S&P/ASX200 closed down, dropping 17.30 points or 0.27% to 6,456.90 and setting a new 50-day low.
The All Ordinaries also closed lower, dropping 22.30 points or 0.33% to 6,656.40.
Across the market, sectors ended the day mixed. Eight of 11 sectors were lower. Utilities was the best performing sector, gaining 1.55%.
The Information Technology sector sustained the heaviest losses, dropping 1.3%.
ASX miner, West African Resources (ASX:WAF) saw its shares drop more than 7%, after a political coup in Burkina Faso, caused concerns about the company’s gold mining operations in the West African nation.
Meanwhile, the RBA is set to deliver a significant hike to its benchmark interest rate when it meets tomorrow, in ongoing attempts to bring down inflation.
ASX tech stocks have been taking a hit ahead of the RBA meeting. The Technology sector is among those that tend to be sensitive to interest rate changes. The S&P/ASX 200 Information Technology (XIJ) index fell more than 1.30% today, extending its year-to-date losses to over 36%. The notable decliners in the index were Xero Limited (ASX:XRO) and Nextdc Limited (ASX:NXT).
The Real Estate sector also tends to be sensitive to interest rate changes. However, analysts believe ASX REIT shares, Charter Hall Group (ASX:CHC), Centuria Industrial (ASX:CIP), HomeCo Daily Needs (ASX:HDN), remain good options for investors.
Australian shares slides back, after early gains
Last updated: 12:45pm AEST
The ASX reversed early gains, as U.S. stock index futures dropped.
The S&P/ASX200 was lower in afternoon trading, dropping 17.30 points or 0.27% to 6,456.90.
The All Ordinaries was lower, falling 19.00 points or 0.28% to 6,659.70.
Sectors were mixed, with 8 of 11 sectors are lower.
Utilities was the best performing sector, gaining around 0.7%, while the Information Technology saw the heaviest losses, falling around 2.2%.
ASX miner, West African Resources (ASX:WAF) shares dropped to a new 52-week low of AU$0.94 after a political coup in Burkina Faso, caused concerns about the company’s gold mining operations in the West African nation.
ASX opens up in Monday trading
Last updated: 10:30am AEST
The ASX has opened higher, despite the recent volatility seen across global markets.
The S&P/ASX200 gained 25.10 points or 0.39% in morning trading, to sit at 6,499.30.
The broader All Ordinaries gained 19.10 points or 0.29% to 6,697.80.
Capricorn Metals Ltd (CMM) was among the top gainers for the morning, climbing more than 4%.
Meanwhile, Home Consortium Ltd (HMC) was a major loser, dropping around 2%.
Australian shares are set to edge higher this morning, despite some negative sentiment after Wall Street sustained heavy losses in Friday afternoon trading.
ASX futures were up 5 points or 0.07 per cent to 6471 ahead of the local market opening.
It follows a negative day on the ASX on Friday, as the gloomy global market outlook reverberated through the local market.
On Wall Street, U.S. stocks fall more than 1.5% across the board on Friday, while the S&P 500 declined 2.9% last week, led by Utilities. The index lost more than 9% in September and is down three straight quarters for the first time since 2009.
Ahead of Monday’s local market opening, the Australian dollar was around 0.1% higher, sitting at around US0.64c.
WTI Crude was down 1.8%, at around US$79.7 a barrel.
Gold was up by about 0.01%, at around $US1660 an ounce.
Meanwhile, Bitcoin was down by around 0.3%, to about AU$30,084.
The Reserve Bank of Australia (RBA) is set to raise its benchmark interest rate by as much as 0.50% when it meets tomorrow, in ongoing attempts to bring down inflation. The real estate sector is among those that tend to be sensitive to interest rate changes.