ASX falls as materials drag
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The news: The Australian sharemarket fell for a third session in a row as materials dragged on the market.
The numbers: The benchmark ASX 200 fell 0.49% to 7,628.2, with six out of 11 sectors finishing in red.
The worst performing sector was materials, down 1.86%, followed by utilities (-1.43%) and energy (-1.4%). Gold and lithium stocks were the bulk of the largest ASX fallers. Despite a price recovery in lithium Morgan Stanley analysts said it continued to remain underweight the sector. Liontown (-5.17%), IGO (-4.38%) and Arcadium Lithium (-2.83) all fell.
BHP ended the day 1.82% lower after the mining giant announced it had abandoned its $74 billion takeover pursuit of Anglo American.
Regal Partners fell 1.27% despite CEO Brendon O’Connor telling its annual general meeting today that the fund manager had lifted inflows and was eyeing growth opportunities.
Meanwhile, Fisher & Paykel fell 0.15% despite receiving a ratings upgrade to ‘overweight’ from Wilsons Advisory.
The best performing sector was consumer discretionary, up 0.74%, followed by telecommunication services (0.37%), and industrials and healthcare (both 0.27%).
One of the best performing stock across the ASX 200 was NRW Holdings that gained 2.76% after Jarden analysts upgraded it to ‘buy’ as they viewed the company as undervalued.
The Australian dollar is lower buying 66 US cents.
The context: Tonight will see the US preliminary quarterly GDP and unemployment figures released, which the Federal Reserve will use as a data point for its next interest rate decision.
