Australia Market falls on rate hike concerns

Australia stock market finished session lower on Friday, 17 February 2023, as risk aversion selloff triggered on reignited prospect of continued hiking interest rate to tackle inflation after Reserve Bank of Australia governor Philip Lowe told members of parliament that the "full effect" of multiple interest rate hikes is yet to come and that rates still had a way to rise.

At closing bell, the benchmark S&P/ASX200 index was down 63.55 points, or 0.86%, to 7,346.77. The broader All Ordinaries index declined 68.56 points, or 0.9%, to 7,552.19.

Total 9 of 11 sectors were lower along with the S&P/ASX 200 Index. information technology was the worst performing sector, falling 2.3%, followed by energy (down 1.78%), and A-REIT (down 1.68%). Utilities was the best performing sector, gaining 1.04%.

The top performing stocks in S&P/ASX200 index were QBE INSURANCE and THE A2 MILK COMPANY, up 7.39% and 6.29% respectively. The bottom performing stocks in S&P/ASX200 index were BLOCK INC. and NEW HOPE CORPORATION, down 7.76% and 5.80% respectively.

Shares of coal miners and technology companies declined. Whitehaven Coal shares plunged 5.2% while tech majors Block Inc and Xero slumped 5.5% and 5.6%, respectively. Seek and Carsales.com were also in the red, down over 2.06 and 5.47%, respectively.

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