Australian shares skid off record highs to end lower; GDP data awaited
04/03/2024 06:17
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Benchmark touched fresh all-time high earlier in day
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Healthcare, miners top drags
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GDP data due on Wednesday
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Genex Power soars on takeover offer of A$0.255 per share
(Updates to close)
By Megha Rani
March 4 (Reuters) - Australian shares ended lower on
Monday, after touching a fresh all-time high earlier in the day,
weighed down by heavyweight mining and healthcare stocks, while
investors await key domestic economic growth data for clues on
the country's monetary policy stance.
The S&P/ASX 200 index .AXJO closed 0.1% lower at 7,735.80
points. The benchmark touched a fresh peak of 7,769.10 points,
after logging record highs in the previous two sessions.
Mining stocks .AXMM were the top drags on the benchmark,
declining 0.8%, as iron ore prices remained under pressure on
slow near-term demand recovery and growing concerns on prospects
for the key steel-making ingredient in China. IRONORE/
Top miners Rio Tinto RIO.AX , BHP Group BHP.AX , and
Fortescue FMG.AX fell between 1.2% to 3.2%, with Fortescue
closing at its lowest level since early December.
Healthcare stocks .AXHJ fell 0.8%, pulled down by
biotechnology giant CSL CSL.AX , which lost 1% to end at its
lowest closing level since mid-December, while Sonic Healthcare
SHL.AX dropped 2%.
Meanwhile, investors await fourth-quarter domestic economic
growth data, due on Wednesday, just ahead of the central bank's
policy meeting. Markets will assess the data for any changes to
their monetary easing expectations.
"Predictions from the RBA (Reserve Bank of Australia)
indicate it (GDP data) is likely to remain subdued, reflecting
continuing concerns around cost of living and interest rates,"
said Josh Gilbert, a market analyst at brokerage firm eToro.
Gilbert added that retail sales in the final quarter of 2023
were the "early signs that consumers were feeling the impact of
the RBA's tightening cycle", which could be a drag on economic
growth alongside weaker residential construction.
Investor focus will also turn to U.S. Federal Reserve Chair
Jerome Powell's testimony before lawmakers on Wednesday and
Thursday.
Back in Sydney, renewable energy firm Genex Power GNX.AX
ended 32.4% higher after it received a A$380.9 million ($248.2
million) takeover offer from Japan's Electric Power Development
9513.T .
In New Zealand, the benchmark S&P/NZX 50 index .NZ50
dropped 0.2% to 11,724.21 points.
($1 = 1.5344 Australian dollars)
(Reporting by Megha Rani in Bengaluru; Editing by Sonia Cheema)
((Megha.rani2@thomsonreuters.com))
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