Australia Market falls on profit taking

The Australian share market finished session lower on Friday, 07 February 2020, as investors locked in profits after the country's central bank forecast slower growth in the near term following the coronavirus outbreak that has continued to grip global markets. At closing bell, the benchmark S&P/ASX200 index declined 26.62 points, or 0.38%, to 7,022.58, while the broader All Ordinaries fell 27.26 points, or 0.38%, to 7,121.43.

The Reserve Bank of Australia (RBA) on Friday slashed forecasts for domestic economic growth in the near term to 1.9% in the year to June, down from a previous prediction of 2.6% cited the fast-spreading virus and the bushfires in the country. The viral outbreak emanating from China, which had claimed more than 600 lives as of Thursday, could shave 0.2 percentage points off Australia's economic output in the current quarter, RBA said.

 

The financials sub-index declined 0.2%, with three of the Big Four banks ending in the red. National Australia Bank edged down 0.1%, while Westpac Banking Corp lost 0.6%.

The energy sub-index declined 1.7%. Beach Energy fell 4%, while Woodside Petroleum shed 1.5%.

Shares of mining players declined as Australian miners braced for a cyclone, leading iron ore to mark its biggest weekly loss since early August last year. BHP Group ended nearly 2% lower, while Rio Tinto finished about 1% weaker.

CURRENCY NEWS: The Australian dollar declined 0.12% to $0.6716, gaining from levels near $0.6690 on Monday.

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