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FIVE at FIVE AU: ASX loses more than 1%; retailers hard hit; gold rally cools

Published 09/05/2024, 04:04 pm
Updated 09/05/2024, 04:30 pm
© Reuters.  FIVE at FIVE AU: ASX loses more than 1%; retailers hard hit; gold rally cools
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It was a rough day on the ASX with the benchmark ASX200 Index losing more than 1% as the market drifted as the day progressed. Nine of the 11 GICS sectors ended in the red with Consumer Discretionary stocks and Financials the worst of the lot, while Energy and Utilities gained.

The losses in retail shares were headlined by a 23.42% drop in Baby Bunting, while Temple and Webster dived 12.20%.

JB Hi-Fi also had a down day, losing 4.7%, after reporting a fall in sales for the quarter with total sales down 0.1% and comparable sales down 0.3%. According to JB, sales remained resilient and in line with expectations, given the challenging and competitive retail market.

JB Hi-Fi Group CEO Terry Smart said, “We are pleased with our Q3 FY24 sales results. Our trusted value-based offerings and high levels of customer service continue to resonate with our customers.”

For Financials, CBA lost 2% on news its cash profits fell last month after reporting that sales fell by 7% in the March quarter.

Gold momentum fades

After strong returns for gold in recent months, the World Gold Council’s Gold Market + ETF commentary report for April 2024, revealed that gains for the precious metal have slowed but still rose 4% over the month, to end at US$2,307 per ounce.

The momentum in the gold price seen in the first quarter had slowed by the end of April due to falling Chinese premia, lower Indian imports and flat-lining COMEX positioning.

For gold-backed ETFs, Asia led global inflows and North American funds registered positive demand; but these were dwarfed by European outflows.

Physically backed gold ETFs saw outflows of US$2 billion during the month, further extending aggregate losses to eleven consecutive months. Australian Gold ETFs ended the month just 1% lower.

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