Australia Market falls 1.8% on profit booking

The Australian share market finished shortened last trading session of the calendar year (2019) notably lower on Tuesday, 31 December 2019, as investors booked profits from gains made this month on tracking decline on Wall Street from record highs overnight. All ASX sectors declined, with the heavyweight banking and mining sectors being among the major losers. At closing bell, the benchmark S&P/ASX200 index declined by 120.75 points, or 1.77%, to 6,684.10, while the broader All Ordinaries shed 119.20 points, or 1.72%, to 6,802.40. The S&P/ASX 200 index had risen around 20% this year. Australia markets closed on Wednesday for the New Year's Day holiday.

Mining stocks fell as lower iron prices hurt its heavyweight components. Among the major miners, BHP fell more than 1%, Fortescue Metals was lower by almost 1% and Rio Tinto was down 0.6%.

Oil stocks were weak after crude oil prices snapped a four-session winning streak and edged lower. Oil Search fell more than 1%, Woodside Petroleum declined almost 1% and Santos was lower by 0.6%.

The heavyweight financial sector fell, with big four banks - Commonwealth Bank, National Australia Bank, Westpac Banking, and ANZ Banking - were lower in a range of 0.7% to 1%. Through the year, Australian banks have been mired in constant allegations of wrongdoing, with the National Australia Bank accused of charging customers unnecessary fees and Westpac Banking Corp sued by regulators for money laundering. Banks' margins were hit by historically low interest rates and large remediation costs in 2019.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, was higher against the U.S. dollar on Tuesday. The local currency was quoted at $0.7000, up from $0.6976 on Monday.

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