Australia Market falls on profit booking

The Australian share market closed down on Wednesday, 30 October 2019, snapping seven sessions of winning streak, as some investors elected for profit booking amid reduced rate cut bets from the RBA, uncertainty over U.S.-China trade deal progress and ahead of the US Federal Reserve's interest rate decision. At closing bell, the benchmark S&P/ASX200 index declined 55.93 points, or 0.83%, to 6,689.48, while the broader All Ordinaries fell 53.77 points, or 0.8%, to 6,794.70.

Investors elected to book made in recent sessions amid concerns over U.S.-China trade deal after a U.S. administration official told that Washington and Beijing are continuing to work on an interim trade agreement, but it may not be completed in time for the leaders of the two countries to sign in Chile next month.

Also, selloff fueled amid jitters ahead of the outcome of the U.S. Federal Reserve's policy-setting meeting later in the day. The U.S. central bank is largely expected to lower interest rates by 25 basis points. That would be the third time this year the Fed cuts rates. However, investors will also look for clues about the Fed's policy decisions in the future.

Shares in fruit and vegetable giant Costa Group plummeted 18% to A$2.63 after exiting a trading halt prompted by a profit warning and capital raising announced on Monday. The fruit and vegetable grower raised ~A$87m from institutional investors at a discounted price to strengthen its balance sheet. The company has been impacted by drought, higher water costs and smaller harvests.

Woolworths (WOW) fell by 1.4% despite announcing a record 6.6% lift in same-store supermarket sales between July and September. The result has been boosted by its plant seedlings promotion and Lion King ooshies. Its online business also grew at a faster pace than rival Coles, while Big W sales jumped by 4.4%. The good news was overshadowed by news that around 5,700 employees have been underpaid in recent years. WOW estimates that this could cost between A$200m and A$300m to fix.

ECONOMIC NEWS: Australia Consumer Prices Up 1.7% On Year In Q3-Australia consumer prices were up 1.7% on year in the third quarter of 2019, the Australian Bureau of Statistics said on Wednesday, up from 1.6% in the previous three months. On a quarterly basis, inflation was up 0.5%, down from 0.6% in the three months prior. The Reserve Bank of Australia's trimmed mean came in at 0.4% on quarter and 1.6% on year.

CURRENCY NEWS: The Australian dollar was little changed against greenback. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.686 after rising from levels around $0.684 in the previous session.

Powered by Capital Market - Live News