On a relatively subdued trading day, the Australian share market opened lower as Wall Street observed a public holiday on Monday. Investors are awaiting local economic data that will contribute to the second-quarter gross domestic product (GDP) figures scheduled for release on Wednesday.
The S&P/ASX 200 Index experienced a decline of 17.4 points, or 0.2%, following a slight increase of 0.2% on Monday, ending the day at 8109.9. This position is just short of the record closing high achieved at the end of July.
Among the ASX 200’s 11 sectors, seven registered declines, with consumer-related stocks particularly affected. This downturn was notably influenced by the ex-dividend trading of major retail stocks. Specifically:
- Woolworths Group Limited (ASX: WOW) experienced a drop of 3.4%.
- Coles Group Limited (ASX: COL) saw a decline of 1.8%.
- Wesfarmers Limited (ASX: ASX:WES) fell by 2.3%.
Strike Energy Limited (ASX: STX) emerged as the most significant laggard, falling 4.1% following its business update.
The financial sector also faced pressure, with Westpac Banking Corporation (ASX: ASX:WBC) down 0.4%. The mining sector was similarly affected by a drop in iron ore prices, which fell below $US100 per tonne due to concerns about the Chinese market. Key mining stocks such as:
- BHP Group Limited (ASX: ASX:BHP) decreased by 0.7%.
- Rio Tinto Group (ASX: ASX:RIO) fell by 0.6%.
- Fortescue (ASX:FMG) Metals Group Limited (ASX: FMG) experienced a minor decline of 0.1%.
Additionally, Lake Resources N.L. (ASX: LKE), a lithium explorer, saw a notable retreat of 5%.
In contrast, gold mining stocks performed well, with Bellevue Gold Limited (ASX: BGL) increasing by 4%. Other notable gainers included Tabcorp Holdings Limited (ASX: TAH) and Harvey Norman Holdings Limited (ASX: HVN).
Attention will now shift to the upcoming local data release at 11:30 AEST. National Australia Bank (ASX: NAB) anticipates a further shift into deficit in the second-quarter balance of payments, which will also refine expectations for the Q2 GDP. NAB projects a modest quarter-over-quarter GDP gain of 0.1%, factoring in potential negative contributions from trade and public finance statistics.
In corporate news, EML Payments Limited (ASX: ASX:EML) saw a rise of 5% following the completion of the acquisition of the Sentenial unit for $53 million. Meanwhile, the AirTrunk sale remains pending, with bidders still awaiting an announcement.
Market participants continue to monitor these developments closely as they prepare for further economic insights and corporate updates.