Australian equities declined nearly 1% on the year’s last day of trade to end an otherwise robust 2024 on a somber note as holiday-curtailed volumes and shortened hours exacerbated volatility.
The S&P/ASX 200 index fell 0.9% to 8,159.10 points on holiday-abbreviated Tuesday, its lowest close since Dec. 20.
With the day’s losses, the benchmark ended the year 7.5% higher, a whisker below last year’s 7.8% growth.
On Monday, the year-to-date gains stood at more than 8%, which would have made 2024 the best year in three for Australian equities.
Around 277.6 million shares, about half of the 30-day average of 588.4 million, were traded, LSEG data showed.
“We are still on a holiday hiatus; it is still going to be a quiet two weeks and things will gradually return to normal as we go through the third and fourth weeks of January,” John Lockton, head of investment strategy at Sandstone Insights, said.
Trading updates from retailers and quarterly production reports from energy and resources companies due mid-January will bring the benchmark to its usual course, Lockton added.
Referring to ASX 200’s all-time high of 8,514.50 points touched on Dec. 3, IG analysts said the benchmark could retest that level if support remained around the 8,000-mark.
Banks dipped 1% on the day, with all “Big Four” lenders shedding as much as 1.2%. However, the sub-index has emerged as one of the best performers this year, closing the year 28.2% higher despite concerns of rich valuations.
Miners, occupying nearly a quarter of the resource-heavy bourse, slid 0.8%, with sector majors BHP and Rio Tinto ending in red.
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The sub-index lost 18.7% in 2024, its worst year in nearly a decade.
Discretionary consumer firms fell 1.4%, while healthcare stocks slipped 0.9%.
Bucking the trend, the energy index ended 0.5% higher. New Zealand’s S&P/NZX 50 index tanked 1.2% to finish at 13,110.74 points.
It has added 11.4% this year - the most since 2020.
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