ASX finishes lower, as market readies for local rate hikes
Last updated: 4:50pm AEST
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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%.
Pre-market breakdown
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.
Market watch
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.
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.
