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Australia Market extends losses

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Capital Market
Last Updated : Dec 20 2019 | 7:31 PM IST
The Australian share market finished lower for a second session on row on Friday, 20 December 2019, on profit taking ahead of the year-end holiday, with financials, consumer staples, energy and communications stocks being notable losers. At closing bell, the benchmark S&P/ASX200 index decreased by 16.79 points, or 0.25%, to 6,816.32, while the broader All Ordinaries fell 18.12 points, or 0.26%, to 6,924.45.

The local market ignored another strong session on Wall Street as investors remain bullish despite the impeachment vote of President Trump in the US House of Representatives.

Shares of banks and financials were lower, hit by a string of lawsuits in the recent weeks, with Westpac Banking Corp down 0.5%, while National Australia Bank fell 0.3% and Commonwealth Bank of Australia declined 0.4%.

Shares of materials were higher, supported by firm metals prices. Heavyweight Rio Tinto rose 0.5%, while Fortescue Metals Group inched higher.

Aged care provider, Regis Healthcare (REG) was among the worst performers with a 17.9% slump. The company provided weaker guidance for FY20 with occupancy rates falling. Earnings (EBITDA) guidance has been lowered by 12% from ~$105 million to ~$92 million while net profit (NPAT) guidance is now expected at ~$28 million, a fall of 26% from previous guidance at $38 million.

Property and infrastructure group, Lendlease (LLC) tumbled 4.5% after announcing late yesterday it had agreed to sell its struggling engineering business to a Spanish group, Acciona, for $180 million. If the sale receives necessary approvals, it is expected to be completed in the first half of 2020.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, inclined against greenback. The Australian dollar changed hands at $0.6888, strengthening after much stronger-than-expected jobs data on Thursday.

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First Published: Dec 20 2019 | 7:21 PM IST

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