Despite climbing by as much as 0.85 per cent this morning, the Aussie market finished its first session of the new financial year in the red, with the ASX 200 sliding by 28.2 pts or 0.43 per cent, to 6539.9. The market was held back most by our mining and energy stocks, after major commodities declined overnight. The Materials sector shed 2.05 per cent and posted its third straight decline. Of 11 sectors, eight finished higher, with property shares in the lead.
Over the week, the ASX 200 finished 0.6 per cent lower. Gains recorded in the Financials, Energy and Utilities sectors were offset by declines in the Materials sector – which posted its fourth straight weekly loss (down 1.7 per cent). Property stocks fell most over the week, shedding 3.0 per cent. Five of 11 sectors finished the week higher.
Imugene (IMU) was the top performer this week after it surged by 18.2 per cent – its best weekly climb since November last year. This was on the back of it announcing promising survival results from a trial it conducted on patients receiving its HER-Vaxx vaccine. The worst performer this week was Evolution Mining (EVN) after it shed 29.6 per cent. This comes after the gold miner downgraded its production guidance.
In company news, Brambles (BXB) climbed 3.2 per cent after it decided to cease the development a pool of plastic pallets for US retailer Costco due to elevated costs. Brambes CEO, Graham Chipchase, said that the pallet provider still has a “strong relationship with Costco and its suppliers”.
In economic news, the CoreLogic Home Value Index of national home prices fell by 0.6 per cent in June, the biggest decline in almost two years.
Looking ahead, Commonwealth Bank (CBA) Group economists expect national home prices to fall by 6 per cent over calendar 2022 and fall by a further 8 per cent in 2023.
Next week, the Melbourne Institute will publish the monthly inflation gauge for June. The Reserve Bank’s (RBA) will also meet o Tuesday. CBA Group economists expect a 50 basis-point rate hike – the biggest back-to-back RBA interest rate hikes since records began in 1990.
3.3bn shares were traded, worth $6.5bn. 897 stocks rose, 475 fell & 347 finished unchanged.
In the US, construction spending data is released with the ISM manufacturing index. On Monday, the US will celebrate The Independence Holiday. US Financial markets will be closed.
Originally published by Divik Nigam – (Author), CommSec