Australia shares end flat as tech, healthcare losses offset commodity gains

Namoi Cotton

20/06/2024 07:48

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      Shares close flat amid inflation worries 
    

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      Namoi Cotton hit lowest since May 1 
    

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      NZ stocks up after GDP meets expectations
    

  
 (Updates to close)
    By Prerna Bedi
       June 20 (Reuters) - Australian shares ended flat on Thursday as losses
in the technology and healthcare stocks countered gains in the commodity stocks,
while expectations of an early rate cut were dampened by the local central
bank's warning on sticky inflation. 
    The S&P/ASX 200 index  .AXJO  was largely unchanged at 7,769.4 points at the
close of trade. The benchmark fell 0.1% on Wednesday. 
    The Reserve Bank of Australia on Tuesday kept interest rates unchanged at a
12-year high as inflation remained above its target band, prompting concerns
that a rate hike might be on the cards if inflationary pressures persist. 
    Data showed the country's first-quarter gross domestic product grew in line
with the RBA's forecast, doing little to change the rates outlook. 
    "The path ahead for the stock markets appears increasingly blurred as
traders await fresh signals from both the economic and monetary fronts," Hebe
Chen, a market analyst at IG said. 
    Global investors await the Bank of England's rate decision. The central bank
is expected to leave rates unchanged. 
    Last week, the U.S. Federal Reserve had signalled a single rate cut for this
year. 
    In Australia, healthcare firms  .AXHJ  snapped five consecutive sessions of
gains to close 1% lower, leading the losses in the benchmark. 
    Technology stocks  .AXIJ  fell 0.5%, with accounting software provider Xero
 XRO.AX  easing 0.2%.
    On the other hand, gold stocks  .AXGD  led gains among resources, rising
about 0.4%, after bullion prices hit a two-week high.  GOL/  
    Heavyweight miners  .AXMM  ticked 0.1% higher, while energy stocks  .AXEJ 
were largely unmoved.   
    Namoi Cotton  NAM.AX  dropped as much as 7.9% to its lowest since May 1,
after the regulator raised competition concerns in cotton ginning services after
it acquires Singapore's Olam Agri  IPO-OLAA.SI . 
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  gained 0.9% to finish the
session at 11,771.81 points. 


 (Reporting by Prerna Bedi in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))
 
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