Australia Market halts five-session losing run to gain 0.4%

The Australian share market finished session higher on Monday, 23 August 2021, snapping five-day losing streak, as investors chased for bargain buying, with tech stocks being notable gainers on tracking positive lead from US peers. However, market gains capped after latest data indicated multi-month lows in manufacturing and services PMI data as well as coronavirus induced lockdown situations.

At closing bell, the benchmark S&P/ASX200 was up 29.06 points, or 0.39%, to 7,489.93. The broader All Ordinaries added 36 points, or 0.47%, to 7,761.15.

Total 9 of 11 sectors ended higher along with the S&P/ASX 200 Index. Information Technology was the best performing sector, gaining +1.68%, while consumer staple was the worst performing sector, losing 0.42%.

 

Nickel miner Western Areas jumped to a 19-month high of A$3.16 after it emerged Fortescue founder Andrew Forrest had taken out a 5.3% stake. Meanwhile, Mr Forrest's attempt to buy fish farmer Huon Aquaculture hit a snag, with the company revealing he under-bid Brazilian giant JBS several weeks earlier.

ECONOMIC NEWS: Australia Markit Manufacturing PMI At 14-Month Low In August- Australia manufacturing sector continued to expand in August, with a 14-month low manufacturing PMI score of 51.7, the latest survey from Markit Economics showed on Monday. That's down from 56.9 in July, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. New orders and output both fell into contraction territory, ending the 13-month growth streaks across both indices. While the lingering disruptions from the COVID-19 pandemic affected both demand and production, firms also reported that supply issues had constrained output. Indeed, suppliers' delivery times continued to lengthen, and at the most severe pace since April 2020. Price pressures eased slightly in August, though both input costs and output charges continued to increase at rates well above their respective survey averages. Firms were generally cautious with regards to their input inventories, which were broadly unchanged from July, but held a slightly more positive view towards output in the next 12 months. The survey also showed that the services PMI fell from 44.2 in July to 43.3 in August, while the composite slipped from 45.2 in July to 43.5 this month.

CURRENCY NEWS: The Australian dollar was at $0.7167, having declined last week from above $0.729.

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