Australia Market extends losses

The Australian share market finished lower for second day in row on Thursday, 07 May 2020, as investor sentiment dampened on following downbeat lead from Wall Street overnight after ADP reporting that private employers in the US laid off a record 20.236 million workers in April. Sentiment was further dimmed after commodity prices fell overnight and as data showing that Australia's services sector continued to struggle in April due to pandemic-related closures and restricted activity. At closing bell, the benchmark S&P/ASX200 index declined 31.61 points, or 0.6%, to 5,353.00. The broader All Ordinaries dropped by 26.01 points, or 0.48%, to 5,438.80.

The latest survey from the Australian Industry Group revealed that the services sector in Australia continued to contract in April, and at a steeper pace, with a Performance of Services Index score of 27.1. That's down from 38.7 in March and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

 

Shares of NIB Holdings fell more than 1% after health insurer reported a 22% year-over-year decrease in health insurance sales in April, but said it hopes to recover some of its losses from fewer claims during the coronavirus pandemic.

Shares of Caltex Australia fell more than 1% after refiner and fuel retailer said retail fuel volumes between January and April this year declined 16% compared to the year-ago period, reflecting the impact of the COVID-19 pandemic.

ECONOMIC NEWS: Australia Posts A$10.602 Billion Trade Surplus In March- Australia posted a merchandise trade surplus of A$10.602 billion in March, the Australian Bureau of Statistics said on Thursday. That surpassed expectations for a surplus of A$6.8 billion and was up from the downwardly revised A$3.865 billion surplus in February (originally A$4.36 billion). Exports surged 15% on month to A$42.417 billion. Imports fell 4% on month to A$31.815 billion.

CURRENCY NEWS: The Australian dollar was lower against the U.S. dollar on Thursday. The local unit was quoted at $0.6407, compared to $0.6445 on Wednesday.

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