Energy, healthcare and consumer discretionary stocks further dragged the Australian sharemarket lower in afternoon trading, amid fears fresh figures to be released this week will show an uptick in inflation, putting pressure on the Reserve Bank to lift the cash rate.
The S&P/ASX 200 was down 43.7 points, or 0.56 per cent, about 1pm. Only two out of 11 sectors – industrials and information technology – were trading in the green. Energy stocks were the worst hit, tumbling 1.48 per cent, followed by healthcare (down 1.35 per cent) and consumer discretionary (down 1.33 per cent).
Wall Street slid lower but still recorded another winning week.Credit: Bloomberg
Sleep apnoea device manufacturer Resmed weighed down the healthcare sector after it crashed 12.27 per cent following Eli Lilly’s reports over the weekend that a decision by the US Food and Drug Administration (FDA) on a potential label expansion for its weight-loss therapy tirzepatide against obstructive sleep apnoea was expected later this year.
Shares in online luxury retailer Cettire also halved after it announced a profit downgrade amid softening demand and increased sales activities eating into its profit margins. The retailer’s share value has collapsed 76 per cent since February, when it closed at a record of $4.83. It was trading at $1.13 Monday afternoon.
Evolution Mining (down 4.42 per cent), JB Hi-Fi (down 3.33 per cent) and Whitehaven Coal (down 2.83 per cent) were among the worst performing mega-cap stocks.
The embattled Star Entertainment Group tumbled 6.73 per cent after issuing a sombre trading update as high rollers continue to avoid its three casinos and the costs associated with its regulatory compliance eat into its earnings.
Meanwhile, Myer shares surged after the company announced it was exploring a merger with Solomon Lew’s Apparel Brands, which owns retail brands Portmans, Dotti, Just Jeans and Jay Jays. Myer shares were up 16.59 per cent in early trade while Premier Investments, which owns Apparel Brands, was 5 per cent higher.
QUBE Holdings advanced 2.27 per cent to become the strongest performing mega-cap stock, followed by Meridian Energy (up 1.97 per cent) and Cleanaway Waste Management (up 1.67 per cent).
In other news, the Australian Bureau of Statistics on Wednesday will release the consumer price index indicator for May. Economists are expecting the CPI indicator to increase to 3.8 per cent, up from 3.6 per cent in April.