Australian share market ends flat as utilities offset losses in tech, real estate

An advance in large cap stocks made up for losses in real estate and tech stocks, with the benchmark unchanged on Wednesday.

The Australian share market was flat on Wednesday as gains in large cap stocks were offset by falls in real estate and tech shares.

The benchmark S&P/ASX200 lost 0.1 per cent, or 4.8 points, to close at 7,073.4 points. Meanwhile, the All Ordinaries slipped further, losing 0.2 per cent to 7,277.8 points.

The Australian dollar is down and is currently buying US65¢.

Across the ASX200 index, five of 11 industry sectors finished in the green, led by gains in utility stocks which added 0.9 per cent after a rally from Origin Energy.

The sector heavyweight has convened a shareholder meeting on Thursday, where investors will vote on a proposed $20bn takeover bid from a Brookfield-led consortium. Shares added 1.7 per cent to reach $8.42.

Brookfield’s $20bn takeover bid for Origin Energy is expected to by kiboshed by Australian Super. Picture: Supplied.

Gemma Dale, director of investor behaviour at NAB Trade, said the rally was based on investors hopes of an increased offer coming to market, up from $9.52 a share.

“I think that’s very optimistic,” Ms Dale said, adding that Australian Super’s blocking stake was “very meaningful”.

“No one’s confused about what that means.”

Interest rate sensitive real estate stocks were the biggest losers, falling 1.5 per cent, ahead of an address by Reserve Bank governor Michele Bullock on Wednesday evening at the Australian Business Economists annual dinner.

Charter Hall sank 2.9 per cent to $10.09, Dexus lost 1.7 per cent to $6.88, and Lendlease plunged 3.8 per cent to $6.38.

Freshly minted RBA governor Michele Bullock will address the ABE annual dinner on Wednesday night. Picture: NCA NewsWire / Martin Ollman

Ms Dale said investors remained concerned for the sector given the prospect of further rate hikes.

“We’re still pricing in one more increase in February,” Ms Dale said.

“There’s some quite extraordinary commercial property write-downs in the US in particular .... when you factor in a slightly later setting for cuts because Australian inflation is stickier and then these big write downs I think investors are getting increasingly nervous.”

Tech stocks also sank on the benchmark, dipping 1.1 per cent despite US chipmaker Nvidia unveiling that its revenue had tripled on the back of a boom in artificial intelligence.

However, the results failed to please investors after the tech company revealed US trade sanctions on Beijing would impact sales.

Locally, gold miners also performed strongly with commodity prices nearing $US2000 an ounce. Newmont climbed 2.1 per cent to $57.22, Bellevue Gold increased 2.3 per cent to $1.55, and De Grey Mining rose 4.8 per cent to $1.31.

Real estate stocks fell 1.5 per cent as investors remain fearful of a further increase to interest rates. Picture: Supplied

In company news, healthcare firm Healius’ stocked slumped 33.2 per cent to $1.23, its largest fall on record to trade at its lowest level since February 1999.

The stock resumed trading on Wednesday after a two-day halt after the company completed a capital raise of $187m to alleviate debt.

Travel company Webjet reported a 39 per cent rise in revenue over the six months ending September 30. Net profit after tax was $47.3m over the same period, compared with $4 million a year earlier. Shares climbed 0.9 per cent to $6.67.

PEXA dropped 4.4 per cent to $11.60 after chief executive Glenn King said Australia’s economic outlook remained “mixed” due to restrictive monetary policy.

Oil and gas prospector Karoon Energy added 1.9 per cent to $2.16. Goldman Sachs upgraded the stocks rate to a ‘buy’.

Jewellery retailer Lovisa added 0.6 per cent to $18.37 despite recording a 6 per cent decline in sales on a per store basis in the first half of financial year 2024.