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Australia Market falls 0.68%

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Capital Market
Last Updated : Nov 17 2021 | 7:31 PM IST
The Australian share market has finished lower for second straight session on Wednesday, 17 November 2021, weighed down by Commonwealth Bank of Australia after country's largest bank warned of a margin-hit from the low interest rate environment and mortgage competition. However, market losses capped somewhat as wages data supported Reserve Bank Governor Philip Lowe's dovish stance.

At closing bell, the benchmark S&P/ASX200 declined 50.50 points, or 0.68%, to 7,369.93. The broader All Ordinaries index dropped 43.11 points, or 0.56%, to 7,704.03.

The bottom performing stocks in this index were NUFARM and COMMONWEALTH BANK OF AUSTRALIA, down 8.57% and 8.07% respectively. The top performing stocks in this index were UNITI GROUP and NICKEL MINES, up 8.3% and 6% respectively.

Shares of banks and financials were biggest drag on the market, with Commonwealth Bank of Australia leading losses with shares plummeted 8.6% after the lender sounded a warning on loan margins. Rivals ANZ, NAB and Westpac lost 1-2%.

Materials stocks were also down, with BHP, Rio Tinto and Fortescue Metals Group down 1-2% as iron ore prices dropped for a fourth straight session amid a rising greenback.

Shares of Nufarm declined 8.6% after the company warned of margin pressure from raw material costs. Seed technology and crop protection maker Nufarm reported an underlying net profit for the 12 months through September of A$61.1 million , compared with a A$73.1 million loss a year earlier. Nufarm said its new fiscal year had started well but flagged continued margin pressure from raw material costs and challenges from global logistics and supply chains.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 95.998, jumping from levels above 95.9 earlier after better-than-expected U.S. retail data renewed concerns about an earlier than expected rate hike by the U.S. Federal Reserve. The Australian dollar was at $0.7286, sliding from levels around $0.73 earlier.

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First Published: Nov 17 2021 | 4:11 PM IST

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