ASX 200 closes lower as healthcare stocks fall
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The news: The Australian sharemarket and local bonds fell on Monday despite the S&P 500 closing above 5,000 for the first time on Friday and while the market awaits US inflation numbers on Wednesday.
The numbers: The benchmark ASX 200 closed 0.39% lower at 7,614.9, despite seven out of 11 sectors finishing in the green.
The IT sector was strongest, gaining 1.02%, followed by consumer discretionary (0.58%) and utilities (0.47%). Appen gained 16.07% as investors cheered the announcement it was cutting costs, including through the closure of its North American offices.
Healthcare was the worst performing sector, dropping 3.19%, followed by energy (-1.03%) and materials (-0.57%). CSL sank by 5.02% as the market digested the news that it abandoned plans to seek regulatory approval for a cardiovascular drug that was in phase-three trials.
JB Hi-Fi was the best performing stock within the ASX 200, gaining 7.34%, following its better-than-expected earnings results. While sales picked up at the retailer's Australian stores in January, rising 1.7%, they were down at The Good Guys (-2.2%) and JB Hi-Fi New Zealand (-4.1%).
The worst-performing stocks were Liontown Resources (-7.62%) and Fletcher Building (-6.1%). Liontown fell after a Corporations Act provision that prevented Gina Rinehart's Hancock Prospecting from attempting a takeover of the miner lapsed on Sunday. There has been no news yet of any potential offer.
Fletcher Building’s shares took a dive before a trading halt as the firm announced it was due to release its first-half earnings update on Wednesday that it says “is likely to materially vary from current analyst forecasts”. Fletcher has been hit with more provisions over its troubled construction projects for SkyCity which are involved in civil proceedings in both Australia and New Zealand relating to money laundering.
The Australian dollar finished lower, buying 65.2 US cents.
Australia’s 10-year yield advanced three basis points to 4.15%.
The context: Breville, Challenger, CSL, James Hardie Industries, Seven West Media, and Seek will post earnings on Tuesday, while Bank of England Governor Andrew Bailey will make an address at Loughborough University.
