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Australia Market falls on profit booking

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Capital Market
Last Updated : Jan 21 2020 | 3:31 PM IST
The Australian share market finished session lower on Tuesday, 21 January 2020, snapping five-day record-breaking winning streak, as investors booked profits. Most of ASX's sectors were down, with the tech, financials and industrials sectors being notable losers. At closing bell, the benchmark S&P/ASX200 index declined 13.17 points, or 0.19%, to 7,066.34, while the broader All Ordinaries fell 15.80 points, or 0.22%, to 7,180.54.

The information technology sector underperformed the most with a loss of 1.3%, with Technology One leading losses, down 4.7% while WiseTech dropped 4% and nearmap 3.1%.

Travel and tourism stocks came under pressure after China confirmed person-to-person spread of a new corona virus and reported a fourth death related to the outbreak in central city of Wuhan. As per data released by Australian Bureau of Statistics last week, China is Australia's top tourism source, accounting for over 1.4 million visitors in 2018-19. Airliner Qantas Airways ended the session 1.7% lower and Sydney Airport Holdings lost 3%, while Flight Centre Travel Group and Corporate Travel Management Ltd fell about 3% and 4.6%, respectively.

The consumer staples sector out-performed with a gain of 1% thanks to a 2% rise in Woolworths to a record high closing price of $40.01. Coles Group gained 1.3% to A$16.13, and a2 milk gained 1% to A$14.81. Fruit and vegetable producer Costa Group dropped 2.2% to A$2.70.

Among individual stocks, BHP Group (BHP) fell 0.1% to A$41.20 after reporting quarterly production figures. Iron ore output improved compared to the same quarter last year, rising 4% to 60 million tonnes, and first half output was 2% higher. However, petroleum production fell by 9%, prompting the expectation that full year petroleum production will be at the lower end of a range of 110 to 116 million barrels of oil equivalent (mmboe). The remainder of BHP's production forecasts remained unchanged.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, little changed against the U.S. dollar. The Australian dollar changed hands at $0.6864 after recovering from lows below $0.687 yesterday.

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First Published: Jan 21 2020 | 3:13 PM IST

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