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FIVE at FIVE AU: Energy leads declines as China moves lift oil & coal prices

Published 01/09/2023, 02:56 pm
Updated 01/09/2023, 03:30 pm
© Reuters.  FIVE at FIVE AU: Energy leads declines as China moves lift oil & coal prices
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The ASX 200 was trading 0.28% lower at 7,285 points this afternoon, although the benchmark index is set for a positive week overall.

Today’s standout sector was energy, adding more than 2.10% on higher coal and oil prices as China took steps to support its housing sector.

According to the AFR, “Five of China’s biggest banks on Friday cut interest rates on a range of deposits in a coordinated effort to ease pressure on their shrinking margins.

“China’s central bank said on Friday it would cut the foreign exchange reserve requirement ratio (RRR) by 200 basis points (bps) to 4% from 6% beginning September 15, a move seen aimed at slowing the pace of yuan declines.”

The energy sector saw strength from Woodside Energy whose Trion field development plan received regulatory approval, and from Santos, who agreed to sell up to a 5% interest in PNG LNG. Whitehaven Coal (ASX:WHC) was up as much as 5.4% today, while New Hope and Paladin Energy (ASX:PDN) also gained.

Consumer discretionary stocks were also in the green and finished the week around 4% higher.

The Healthcare sector led the declines today after a solid run earlier this week, with CSL and Resmed trading more than 2% lower at the time of writing. Real estate stocks also logged a red day as REIT’s Goodman Group (ASX:GMG) and Charter Hall traded lower, even as CoreLogic reported an acceleration of house price gains in most major cities in August.

Fortescue (ASX:FMG) Metals Ltd was down by as much as 5.6% after Guy Debelle quit the board of Future Industries — the third high profile Fortescue resignation in just over a week. CFO Christine Morris resigned from the role on Thursday evening after just two months in the role and Fiona Hick resigned as CEO of the company’s flagship iron ore division after just six months.

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