Australia Market trades softer

Headline indices of the Australia market were lower on Wednesday, 24 October 2018, as losses in mining and energy stocks amid fall in crude oil prices to two-month lows were more than offset by gains in the financial and healthcare sectors. In late afternoon trades, the benchmark S&P/ASX200 index fell 17 points, or 0.3%, at 5,826.10 points, while the broader All Ordinaries index shed 20.35 points, or 0.34%, to 5,924.50 points.

Global stocks have suffered this week on worries about US earnings, Italian government finances, US trade tensions and mounting pressure on Saudi Arabia over the death of dissident journalist Jamal Khashoggi. Saudi Arabia's diplomatic standing looked increasingly precarious as Turkey dismissed the kingdom's efforts to blame Khashoggi's death on rogue operatives while U.S. President Donald Trump said Riyadh staged the "worst cover-up ever."

 

Shares of materials and resources companies suffered losses, despite iron ore prices rising for a second straight session. Rio Tinto, BHP Billiton, and Fortescue Metals were lower in a range of 1% to 2%.

Shares of energy companies suffered heavy losses, weighed down by drop in crude oil prices overnight to two-month low amid speculation of a possible drop in demand for oil due to uncertainty about the outlook for global economic growth. WTI crude for December delivery plunged $2.93 or 4.2% to $66.43 a barrel on the New York Mercantile Exchange. Woodside Petroleum and Oil Search were lower in a range of 1% to 2%.

Shares of Australian banks and financials advanced on bargain hunting after losses in the previous session. ANZ Banking, Commonwealth Bank, Westpac and National Australia Bank were higher in a range of 0.5% to 1.2%.

Shares of Gold miners were higher, thanks to the yellow metal's "safe haven" status during bouts of risk aversion. Gold producer Regis Resources was up 4.2%, while the country's largest independent gold miner Newcrest Mining rose as much as 2% after it reported a 5% rise in gold production for the quarter ending Sept 30.

Shares of Bellamy's Australia fell almost 10% after Infant formula maker expects fiscal 2019 first-half sales to decline in a range of 10% to 15% from a year ago.

CURRENCY: Australian Dollar was tad higher against greenback and other major currencies on Wednesday. The Australian dollar was quoted at $0.7087, up from $0.7064 on Tuesday.

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