ASX declined further as property stocks drag
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The news: The Australian sharemarket declined for a second day following hotter-than-expected inflation numbers on Wednesday.
The numbers: The benchmark ASX 200 fell 0.3% to end at 7,759.6, with seven out of 11 sectors finishing in red.
The worst performing sector was AREITs (-2.15%), followed by utilities (-0.79%) and industrials (-0.67%). Across the ASX 200, seven out of the top 10 worst performers were property plays, after worse-than-expected inflation figures increased bets that the next Reserve Bank interest rate decision will be a hike.
Mirvac fell 5.71% after Morningstar slashed its fair value estimate on lower development margins. Dexus shares fell 4.44% as the property investor announced the sale of three assets for a combined price of $383.2 million.
GPT Group (-5.87%), Stockland (-4.55%), Region Group (-4.55%), Charter Hall Group (-4.51%) and Waypoint REIT (3.32%) also fell.
Downer EDI dropped 1.47% despite announcing that it had been awarded a new contract worth $860 million by Homes NSW.
Genesis Energy ended 1.24% lower after downgrading its FY25 earnings guidance on lower gas production.
Lynas Rare Earths dropped 0.67% as it announced that it would produce new metals at its Malaysian operations.
Meanwhile, across the wider ASX, Tamboran Resources fell 2.78% after the gas explorer announced that it had priced its US initial public offering at USD24 ($36) per share.
Southern Cross Media ended flat after announcing that it would not pursue a proposal to acquire a number of assets from Australian Community Media (ACM).
The best performing sector was IT, up 0.74%, followed by healthcare (-0.35%).
Takeover target Austal ended 0.82% higher after it announced founder John Rothwell will step down as chair after 37 years to be replaced by ex-US Navy official Richard Spencer.
Elsewhere, Baby Bunting soared 17.81% after the retailer reaffirmed its full-year profit guidance and outlined a five-year strategy to boost earnings.
The Australian dollar is higher, buying 66.72 US cents.
The context: Tonight will see the release of the latest US GDP figures and unemployment figures.
Tomorrow, all eyes will be on the first presidential debate between US President Joe Biden and former US president Donald Trump, to be hosted by CNN.
Friday will also see the release of the latest US personal consumption expenditure figures, the Federal Reserve’s preferred inflation gauge.
