Australian sharemarket dips after all-time records last week, benchmark index fades after touching record intraday high

The benchmark ASX index hit a new record intraday high and then failed to maintain momentum, fading throughout the rest of the session.

The Australian sharemarket inched lower after smashing records last week, briefly touching a fresh intraday peak before slipping amid light trading volumes ahead of the central bank’s monthly meeting.

The benchmark S&P/ASX 200 index closed 17.9 points or 0.25 per cent, lower at 7161.6 while the All Ordinaries Index dipped 17.3 points or 0.23 per cent to 7406.7.

CommSec analyst James Tao said the local bourse had a choppy start, swinging between gains and losses, with the S&P/ASX 200 briefly breaching 7200 for the first time, beating its previous intraday high of 7197 in February 2020 before the Covid-19 pandemic struck in earnest.

OMG chief executive Ivan Tchourilov said overall trading volumes were light ahead of the Reserve Bank of Australia’s June meeting on Tuesday.

“It’s unlikely we’ll see any surprises from the meeting, but markets are still very nervous about anything to do with inflation, so traders seem to be mostly sidelined today,” Mr Tchourilov said.

“Gold stocks are today’s standout, with the precious metal continuing to make a comeback late last week after a poor first quarter of 2021.

Gold is seen as a hedge against inflation. Picture: David Gray/AFP

“It’s nudged back up above $US1900 (per ounce), which has given top tier producers such as Northern Star a boost, and started to paint a much rosier technical picture compared to a few months ago.”

Among producers of the precious metal, Northern Star rose 2.27 per cent to $11.70, Perseus Mining advanced 3.57 per cent to $1.45 and Resolute Mining gained 4.27 per cent to 61 cents.

Other strong performers included Bega Cheese, up 3.46 per cent at $5.98, Domino’s Pizza, which added 2.66 per cent to $110.30, and poultry producer Inghams Group, up 3.52 per cent at $3.53.

Bell Potter has “buy” recommendations on Bega Cheese and Domino’s, with respective target prices of $7.35 and $122, while Goldman Sachs issued a research note retaining its “buy” rating for Inghams after the company on Friday released a positive full-year trading update.

The analysts said they expected Inghams would keep its Woolworths supply contract when it expires in August and also some moderation in supermarket prices as lower feed costs flowed through.

Bega Cheese was a strong performer but didn’t release an announcement. Picture: Jason Edwards

Tech stocks were mixed, with buy now, pay later leader Afterpay shedding 1.22 per cent to $92.78, smaller rival Zip Co dipping 2.09 per cent to $7.04 and accounting software provider Xero gaining 1.69 per cent to $132.65.

Embattled investigative analytics and intelligence software outfit Niux plunged 17.8 per cent to $2.77 after downgrading its full-year guidance for the second time in six weeks.

“There’s a near-term level of uncertainty regarding the precise timing, shape and scope of some large and anticipated customer contracts coming to fruition in the next few weeks,” chief executive Rod Vawdrey said.

“We expect to capture most of the revenue which remains under current negotiation with these customers either by financial year end or early in our new financial year.”

On its stellar ASX debut in December, Nuix shares closed at $8.01 compared with an issue price of $5.31.

Nuix chief executive Rod Vawdrey ringing the ASX bell after the company completed 2020s biggest IPO. Picture: NCA NewsWire/Bianca De Marchi

They have since been battered, with negative news reports raising big questions about the company, while Mr Vawdrey has publicly apologised to investors about the stock’s performance.

Rio Tinto added 0.58 per cent to $123.73, BHP backtracked 0.64 per cent to $47.85 and Fortescue lifted 1.4 per cent to $22.43.

ANZ slid 0.52 per cent to $28.71, Commonwealth Bank gave up 0.84 per cent to $99.72, National Australia Bank backtracked 0.52 per cent to $26.95 and Westpac eased 0.15 per cent to $26.42.

Energy stocks were weaker, with Oil Search sliding 2.15 per cent to $3.64, Origin giving up 2.7 per cent to $3.97, Santos decreasing 1.6 per cent to $6.77 and Woodside Petroleum softening 1.36 per cent to $21.81.

The Aussie dollar was buying 77.29 US cents, 54.48 British pence and 63.37 Euro cents in afternoon trade.

Originally published as Australian sharemarket dips after all-time records last week, benchmark index fades after touching record intraday high