The Aussie market could snap its seven session winning streak today with the ASX 200 down quite heavily at lunch. The index has fallen 113 points or 1.9% to 6,034. It would be the first decline in June if the market stays in the red for the remainder of the day. The recent rally in equities has stalled following comments by the US Federal Reserve chair Jerome Powell. The Dow Jones and S&P500 have both fallen for consecutive days although the tech heavy Nasdaq continues to hit new highs.
Losses on Thursday have wiped out a fair chunk of the gains made earlier this week with broad declines after the first few hours of trade. The financials and energy sectors are again the laggards, following yesterday’s easing, acting as major drags on the market with all sectors in the red. Of the big four lenders, ANZ Bank (ANZ) and Westpac (WBC) are falling hardest, both down over 4.6%. Commonwealth Bank (CBA) is down 2.9%.
Health stocks and gold miners are outperforming with more defensive names favoured so far. The precious metal is seen as a safe haven in times of uncertainty and miners such as Newcrest (NCM) and Saracen (SAR) both 5% higher while Northern Star (NST) is lifting 6.3%.
Retailers have been in focus over recent days with JB Hi-Fi (JBH) following Wesfarmers (WES) (which owns Officeworks, Bunnings & Kmart/Target) and Harvey Norman (HVN) in providing a sales update so far this financial year. JBH’s Australian store network and The Good Guys have both seen significant sales growth of 20% and 23.5% respectively in the second half to date (May 31) of FY20 as customers spend more work and leisure time at home. NZ sales were hampered by far more restrictive COVID19 lockdown laws with sales down 19% in the half. The group has also reinstated its FY20 guidance with total sales of $7.86b and net profit after tax (NPAT) to lift 20- 22% on the year before. JBH shares are down 2.2%.
Online retailer Kogan.com (KGN) has resumed trade after successfully raising $100m from institutional investors with the funds to be used for potential growth opportunities. KGN shares have jumped 11%.
So far, 2.5b units have traded worth $4.5b with 456 stocks higher, 682 weaker and 357 unchanged. The Aussie dollar is buying 69.8 US cents.
Published by CommSec