SYDNEY: Australian shares fell on Friday, slipping from their record close a day earlier, as lacklustre stimulus from China and the continued weakness in the Chinese property sector hit mining stocks.
The S&P/ASX 200 index finished 0.9% lower at 8,283.2. However, its 0.9% climb to end at an all-time high on Thursday, has helped it end the week 0.8% higher.
The heavyweight miners fell 1.6%, their third consecutive session of losses, as subdued stimulus from China, Australia’s top trading partner, hurt iron ore prices.
“Miners were hit hardest by China’s lacklustre GDP growth and a gloomy property market update, both of which bode cautiously for the commodities demand outlook,” Hebe Chen, market analyst at IG, said.
China’s economy grew 4.6% in July-September quarter, official data showed, a touch above the 4.5% forecast in a Reuters poll but below the 4.7% pace in the previous quarter.
However, new home prices fell at the fastest pace since 2015, showing continued weakness in the property sector, a key user of steel. Sector giants BHP Group and Rio Tinto dropped 2% and 0.9%, respectively.
The sub-index has ended in the red for three consecutive weeks, after its 0.7% decline this week. Rate-sensitive financials ended flat. Top lender Commonwealth Bank of Australia gained 0.3%, while ANZ Group lost 0.7%.
The banking sub-index added 4.1% this week, rising the most since week-ending Aug. 16. The utilities sector declined 3.5%, hitting its lowest level in over a month. Origin Energy fell 2%, while APA Group dropped 5.9%.
Energy stocks eased 1.2%, with Woodside Energy and Santos shedding 1.2% and 1%, respectively.
Comments
Comments are closed.