ASX lower for third straight session but November still best month in 32 years

The ASX fell for the third straight session but November was the strongest month on the local market in 32 years.

The Australian sharemarket tracked lower for the third straight session as the strong Aussie dollar weighed on US currency earners but remains at nine-month highs after a stellar November.

While the benchmark S&P/ASX200 index was down 1.26 per cent at 6518 and the All Ordinaries Index dropped 1.1 per cent to 6742, it was the best month on the ASX in 32 years.

ThinkMarkets Australia analyst Carl Capolingua said it was a fairly broad move lower outside of the tech sector.

“The strength in the Australian dollar weighed on some of our overseas earners today,” Mr Capolingua said.

“You look at CSL and Cochlear, and more generally the materials sector, they struggled today.

“There were some bright spots among the miners though. Part of the reason for the recent strength in the Australian dollar is the strong performance of base metals.”

Copper prices hit their highest level since April 2013 while iron ore is nudging six-year highs.

“So, there’s some push and pull there between the positive impact higher commodities prices will have on earnings, versus the negative impact of translating those USD earnings back into AUD.”

When CSL shares move, the ASX feels it.

The biggest company on the ASX, biotech giant CSL, slid 1.86 per cent to $297.38 while hearing aid pioneer Cochlear gave up 0.81 per cent to $220.42.

Mining giant BHP lost 1.68 per cent to $38.07 and Rio Tinto softened 0.59 per cent to $101.40.

Qantas shed 2.54 per cent to $5.38 after confirming thousands of staff would lose jobs, with most of the airline’s ground handling operations to be outsourced in a cost-cutting move.

Whitehaven Coal was a poor performer, slumping 9.56 per cent to $1.32.

Adventure clothing retailer and Rip Curl owner Kathmandu Holdings gave up 5.3 per cent to $1.16 after its chief executive Xavier Simonet resigned to head up Austrade.

The profit outlook for Treasury Wine Estates has taken a big hit from China’s latest measures hurting Australian trade. Picture: Alex Aleshin

Penfolds owner Treasury Wine Estates said China’s measures against Australian wine imports put up to 30 per cent of its annual earnings in jeopardy, sending its shares 6.93 per cent lower to $8.59.

Mr Capolingua said it had been the most eventful month he had ever seen with the punitive wine tariffs coming after the US election, signs of a relatively smooth transition to the new Biden administration, an interest-rate cut and quantitative easing program locally, and the announcement of at least three viable vaccine candidates.

He said investor thinking seemed to have shifted subtly but importantly.

“We’re are now expecting things will get better before they may eventually get worse, and not the other way around.”

ANZ retreated 1.95 per cent to $22.64, Commonwealth Bank backtracked 2.03 per cent to $79.07, National Australia Bank declined 1.84 per cent to $22.89 and Westpac was 1.47 per cent lower at $20.13.

The Aussie dollar was fetching 73.91 US cents, 55.33 British pence and 61.7 Euro cents in afternoon trade.

Originally published as ASX lower for third straight session but November still best month in 32 years