Australian stock market loses ground, weighed down by materials sector
The S&P/ASX200 index has closed in negative territory, snapping a two-day winning streak. One sector in particular led the declines.
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The Australian share market snapped its two-day winning streak to close lower on the back of a weak US lead and another rise in COVID-19 cases and deaths in Victoria.
The S&P/ASX200 closed 0.11 per cent lower at 6132, while the All Ordinaries Index dipped 0.24 per cent to 6257.
The materials sector led the declines after generally softer metals prices overnight, particularly gold, which fell sharply below recent record highs to less than $US2000 an ounce.
Newcrest, which mines the precious metal, finished 3.23 per cent lower at $34.10.
Despite the iron ore price nudging 12-month highs of above $US120 a tonne, Rio Tinto dropped 1.35 per cent to $101.40, BHP was down 0.72 per cent to $39.91 and Fortescue Metals shed 1.36 per cent to $18.13.
Three of the big four banks closed higher, with Westpac up 2.31 per cent to $18.19, National Australia Bank adding 2.24 per cent to $18.28 and ANZ gaining 1.95 per cent to $18.85.
But Commonwealth Bank lost 0.48 per cent to $74.34 after reporting an 11.3 per cent fall in full-year cash net profit, which doesn’t include gains from divestments, largely driven by bad debts as a result of the pandemic.
Recruiting group SEEK posted a loss of $111.7 million for the 12 months to June 30, a 162 per cent reversal on the previous financial year, saying the outlook for jobs amid the health crisis remained uncertain.
The company’s shares dropped 8.63 per cent to $19.58.
“There were some companies to lift on the back of results … not many,” CommSec market analyst James Tao said.
One of them was Downer EDI despite posting a $150 million net loss, a big turnabout from a $261.8 million net profit last financial year, partly driven by contract losses in its engineering, construction and maintenance services business.
The company said it was again considering selling its mining services business and mopping up the 12 per cent in cleaning and catering company Spotless it doesn’t already own.
Downer gained 2.87 per cent to $4.30.
Mr Tao said the Aussie dollar faltered on the back of June quarter wages growth figures from the Australian Bureau of Statistics that hit a 23-year low.
The dollar was fetching 71.29 US cents, 54.61 British pence and 60.72 Euro cents at 1649 AEST.
Originally published as Australian stock market loses ground, weighed down by materials sector