The native share market has closed barely decrease following a see-saw buying and selling session marked by the discharge of weaker-than-expected home financial information that might reduce the chances of extra charge hikes.
The benchmark S&P/ASX200 index was down as many as 42 factors, or 0.5 per cent in morning buying and selling, earlier than climbing 14 factors, or 0.2 per cent into optimistic territory within the early and mid afternoon.
But finally it pale within the late afternoon to complete Wednesday down 6.8 factors, or 0.1 per cent, to 7,251.6. The broader All Ordinaries closed down 1.9 factors, or 0.03 per cent, to 7,456.1.
Shortly earlier than lunchtime the Australian Bureau of Statistics reported that Australia’s gross home product rose 0.5 per cent within the fourth quarter, decrease than economists had been anticipating.
“I think this is a number that is not that easy to digest,” mentioned IG market analyst Hebe Chen.
“On the positive side, yes, it’s showing that our economy still grew 2.7 per cent year over year, but this is lowest pace in the past five quarters.
“It appears just like the market individuals are wanting on the optimistic aspect, that we nonetheless have a buffer for a comfortable touchdown.”
The ABS also announced on Wednesday that inflation decelerated in January, with consumer prices rising 7.4 per cent in the past 12 months, down from 8.4 per cent in the year to December.
NAB economist Taylor Nugent said while the monthly CPI readouts weren’t as informative as the quarterly figures – they don’t capture many service-sector price hikes – the data release did support the case that Australian inflation had peaked. As such, the bank expects the Reserve Bank to hike rates just twice more, in March and April, and then pause.
Ms Chen said the market was also reacting to Chinese official purchase managers’ index (PMI) data beating expectations, showing that factory activity last month was at an 11-year high.
That led to a solid performance by the ASX’s materials and energy sectors, which were the only ones in the green on Wednesday. Energy climbed 1.6 per cent and materials gained 2.3 per cent.
BHP added 2.3 per cent to $46.22, Fortescue Metals gained 3.4 per cent to $22.12 and Rio Tinto finished up 2.5 per cent at $119.63.
Also, Woodside was up 2.5 per cent to $36.80 and Yancoal gained 5.1 per cent to $6.16 amid talk it would pursue a bid for BHP’s Daunia and Blackwater coalmines in Queensland.
All the big banks were down significantly, with NAB dropping 2.1 per cent to $29.38, Westpac falling 2.0 per cent to $22.07, ANZ down 1.1 per cent to $24.37 and CBA down 1.6 per cent to $99.05.
Former small cap darling Pointerra plunged 22.6 per cent to a two and a half year low of 12c after the 3D dataset company announced lacklustre half-year results.
Pointerra said there had been “unavoidable program delays” with key US energy utility customers, leading to a delay in invoicing and a drop in cash receipts.
Also, Dubber plunged 25.8 per cent to 23c after the cloud-based call recording company announced a half-year loss of $37m, on revenue of just $16m. It announce plans to restructure the business to save $5m a quarter.
The Australian dollar was buying 67.58 US cents, from 67.24 US cents at Tuesday’s ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Wecdnesday down 6.8 points, or 0.09 per cent, at 7,251.6.
* The broader All Ordinaries dropped 1.9 points, or 0.03 per cent, to 7,456.1.
CURRENCY SNAPSHOT:
One Australian greenback buys:
* 67.60 US cents, from 67.24 US cents at Tuesday’s ASX close
* 92.16 Japanese yen, from 91.67 Japanese yen
* 63.76 Euro cents, from 63.53 Euro cents
* 56.10 British pence, from 55.84 pence
* 108.59 NZ cents, from 109.37 NZ cents.
Source: www.perthnow.com.au
