ASX finishes lower but energy gains
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The news: The Australian sharemarket finished lower, dragged down by tech stocks.
The numbers: The benchmark ASX 200 ended 0.41% lower at 7,780.2, with nine out of 11 sectors finishing in red.
The worst performing sector was IT, down 1.55%, followed by telecommunication services (-0.99%) and materials (-0.73%). Most of the large tech companies fell including Wisetech (-2.34%), Xero (-2.72) and NextDC (-0.61%).
Seven Group Holdings was among the worst performers in the ASX 200, down 4.09%, after it criticised “fundamental errors” from an independent review by Grant Samuel that recommended Boral shareholders reject Seven's buyout bid. Boral ended the day 1.46% lower.
ALS extended losses from Monday, finishing down 1.91%, as it announced another two acquisitions, this time US-based York Analytical laboratories and Europe-based Wessling Holding, for a total of $225 million.
Energy was the best performing sector, up 0.5%, followed by consumer staples (0.23%) and utilities (-0.07%). Global oil prices lifted on Monday, boosting energy stocks, while Morgans analysts made a number of rating upgrades across Australia’s oil and gas majors. Woodside and Beach Energy both received ratings upgrades to ‘buy’ and finished up 1.06% and 2.59%, respectively.
Elsewhere, retail major Premier Investments was one of the best performers, rising 4.41%, after announcing its plans to demerge its businesses Smiggle and Peter Alexander. The company also posted a 1.7% net profit increase for the first half of the financial year but cut its dividend.
Meanwhile, across the wider ASX, Mesoblast Limited rocketed 43.94% to $0.475 after it announced the US Food and Drug Administration made a decision to allow the company to re-submit a licence application. Mesoblant noted it intended to file the resubmission during the next quarter and sought to address the remaining product characterisation issues.
The Australian dollar is higher, buying US65.39 cents.
The context: Wednesday will see the Australian Bureau of Statistics release the latest consumer price index figures that will help the central bank decide its next interest rate move.
