Market Commentary - Foreign Markets
Australia Market falls after hawkish RBA minutes As on : 21-May-24  14:06

Australia stock market finished session slightly in negative territory on Tuesday, 21 May 2024, as risk sentiments weighed down after minutes of the May 2024 Reserve Bank of Australia meeting showed the central bank considered increasing interest rates during the meeting. Market declines led by miners and telecommunications stocks.

At closing bell, the benchmark S&P/ASX200 index was down 11.98 points, or 0.15%, to 7,851.68. The broader All Ordinaries index declined 11.88 points, or 0.15%, to 8,120.18.

Total 7 of 11 sectors ended higher despite the decline in the S&P/ASX 200 Index. Information Technology was the best performing sector, gaining +0.72%, followed by industrials (up 0.66%), and consumer discretionary (up 0.31%), while telecommunication services was worst performing sector, falling 1.05%, followed by materials (down 0.72%).

The top performing stocks in S&P/ASX200 index were ALS and TECHNOLOGY ONE, up 5% and 4.55% respectively. The bottom performing stocks in S&P/ASX200 index were JAMES HARDIE INDUSTRIES PLC and THE STAR ENTERTAINMENT GROUP LIMITED, down 14.79% and 7.41% respectively.

Telecommunication services shares were major drag on the Market, with Telstra Group leading retreat, down 2.2%, after the company announced plan to cut 2800 jobs to facilitate the reset of its enterprise business. This would result in restructuring costs of $200-$250 million. TLS reaffirmed its FY24 profit guidance and further provided FY25 guidance of $8.4-$8.7 billion for EBITDA.

Shares of James Hardie Industries, the largest global maker of fibre cement products, plunged 14.8% after lowering its fiscal 2025 outlook. The company said its global operational profits in the next 12 months would likely fall amid an uncertain outlook in each of its major markets.

Casino operator Star Entertainment Group lost 7.4% after Hard Rock International denied any involvement in a takeover bid.

Diagnostics firm Sonic Healthcare gave up 6% after cutting its FY24 guidance. The company expects to achieve EBITDA of approximately A$1.70 ? 1.75 billion in FY 2025. The FY 2025 forecast includes the negative impacts of the potential USA PAMA fee cut (A$15m), initial losses on the UK Hertfordshire & West Essex NHS contract (A$10m), and an equity accounted loss for Franklin.ai (A$5m).

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