AU Evening Wrap | Australian Market Experiences Slight Uptick Amidst Downturn in Commodity Sector
Market Performance
Despite a downturn in commodity stocks, the Australian $S&P/ASX 200 (.XJO.AU)$ index closed modestly up by 0.2%, ending the session at 7865.5.
The prominent materials sector witnessed a 1.2% reduction, largely due to the dip in iron-ore prices, bringing its total monthly loss to 6.5%. Major mining companies $BHP Group Ltd (BHP.AU)$, $Fortescue Ltd (FMG.AU)$, and the ex-dividend $Rio Tinto Ltd (RIO.AU)$ experienced declines ranging from 1.0% to 3.6%.
The energy sector also concluded the day on a lower note, with a loss of 0.65%. Utilities emerged as the session's least successful sector, plummeting 4.1%. This was significantly impacted by $Origin Energy Ltd (ORG.AU)$'s sharp 9.4% fall, driven by earnings guidance that fell short of expectations.
However, the negative performance of these sectors was balanced by gains in the banking and consumer sectors, as market participants maintained their expectations for impending interest-rate cuts. The four banking giants – $National Australia Bank Ltd (NAB.AU)$, $CommBank (CBA.AU)$, $Westpac Banking Corp (WBC.AU)$, and $ANZ Group Holdings Ltd (ANZ.AU)$ – which collectively account for over 20% of the ASX 200's market capitalization, saw their shares increase by 0.4% to 1.6%.
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Source: Dow Jones Newswires, AFR, ASX
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