The Aussie market is looking to snap its longest winning streak of 2021 so far as it faces its first daily decline since March 30. The ASX 200 is falling 30 points or 0.45% to 6,968 around lunch. The benchmark index had hit a fresh 13-month just yesterday as it breached 7,000 for the first time since 24 February last year.
While the market is weaker today, the ASX 200 is still well on track for a weekly improvement. At the time of writing, the index is 2% higher over the course of the holiday interrupted week and making it the on track for the best weekly gain in nine weeks (week ending 5 February 2021).
Today’s losses have been across the majority of the market with nearly all sectors in the red. While energy and consumer staples are seeing some of the larger percentage falls, the heavyweight sectors of financials, materials and healthcare are contributing most to the broader declines. Property and communications are slightly firmer while IT is mostly flat.
Individually, it is likes of BHP Group (BHP), Commonwealth Bank (CBA), CSL Ltd (CSL) and Woolworths (WOW) that are weighing most while Goodman Group (GMG), Xero (XRO) and James Hardie (JHX) are among the largest positive contributors.
In company news, Air New Zealand (AIZ) is 1.2% higher as it delays a proposed capital raising which was previously to be conducted before 30 June 2021 to no later than 30 September 2021 on the recent announcement of a TransTasman travel bubble between Australia and New Zealand. This is expected to see flights between the two countries rise to 70% of pre-COVID levels for AIZ. AIZ has also negotiated an increase to its credit facility from the NZ government (its majority shareholder) by NZ$600 million to ensure sufficient liquidity in the meantime.
On the economic front, the Reserve Bank (RBA) has released its semi-annual Financial Stability Review (FSR). The FSR highlights that financial systems in Australia and internationally have been largely resilient to the impact of COVID-19. Australian banks have remained in a strong financial position coming out of the pandemic but economic recovery could still be uneven depending on how wages grow as stimulus is wound back. The AUD in response buys 76.42 US cents.
Published by CommSec