Market Commentary - Foreign Markets
Australia Market extends losses to third day As on : 30-May-24  15:11

Australia stock market finished lower for third straight session on Thursday, 30 May 2024, as risk aversion selloff continued on tracking Wall Street declines overnight and amid concerns persistently high inflation would prompt the Reserve Bank of Australia to keep interest rates high for longer. Most of ASX sectors declined, with shares in materials, utilities, energy, and financial leading losses, offsetting gains in consumer goods and telecom stocks.

At closing bell, the benchmark S&P/ASX200 index was down 37.43 points, or 0.49%, to 7,628.20. The broader All Ordinaries index declined 39.80 points, or 0.5%, to 7,895.89.

Total 6 of 11 sectors were lower along with the S&P/ASX 200 Index. Consumer Discretionary was the best performing sector, gaining +0.74%. Material was worst performing sector, falling 1.86%.

The top performing stocks in S&P/ASX200 index were PRO MEDICUS and NRW HOLDINGS, up 3.6% and 3.45% respectively. The bottom performing stocks in S&P/ASX200 index were REGIS RESOURCES and GENESIS MINERALS, down 6.51% and 5.76% respectively.

Shares of materials and resources retreated after iron ore futures prices slipped on fears of falling demand in China for remainder of the year after Beijing reiterated its stance on continuing to control crude steel output in 2024. Shares of top miners BHP Group and Rio Tinto fell as much as 2% and 1.8%, respectively, while Fortescue declined 3.3%.

ECONOMIC NEWS: Australian Dwelling Approvals Dip in April 2024- In April 2024, seasonally adjusted total dwelling approvals in Australia dropped by 0.3% to 13,078 units. This reversed the previous month's 2.7% increase. Declines were noted in private sector houses by 1.6% and private sector dwellings excluding houses by 1.1%. Approvals decreased in Tasmania by 16.1%, New South Wales by 4.5%, and Western Australia by 0.9%, but increased in South Australia by 13.9% and Queensland by 5.0%, while Victoria remained flat.

Australian Private House Approvals Fall in April 2024- Private house approvals in Australia decreased by 1.6% to 8,822 units in April 2024, reversing from a 4.0% growth in March. This marks the third decline this year. Approvals fell in New South Wales by 5.0%, Victoria by 2.0%, Queensland by 0.2%, and South Australia by 0.1%, while Western Australia saw an increase of 3.5%.

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