The Australian sharemarket experienced a decline on Monday, influenced by a series of disappointing company updates, leading to increased investor caution ahead of the upcoming monthly inflation report.
The S&P/ASX 200 Index dropped by 0.8% (62.3 points) to 7733.7, with ten of the eleven sectors experiencing losses. The All Ordinaries also fell by 0.8%.
Cameron McCormack, VanEck portfolio manager, attributed the decline to weak trading updates and anticipated an increase in annual inflation from 3.6% in April to 3.8% in May. He noted significant pullbacks in cyclical sectors such as consumer discretionary, materials, and healthcare, with notable poor performances from companies like Cettire.
Healthcare stocks declined 1.6%, driven by a 13.2% drop in ResMed shares following concerns about its market, a 2.3% fall in Sonic Healthcare, and a 2.2% decrease in Fisher and Paykel shares.
The consumer discretionary sector fell by 1.2%, with Wesfarmers down 2.4% and JB Hi-Fi down 2.7%. Star Entertainment shares plummeted 4.1% due to a profit warning and other operational challenges. Cettire's shares dropped by 49.3% after a downturn in the online luxury market.
In the commodities sector, Singapore iron ore futures fell by 2.5% due to pessimism about China's property market revival. Consequently, BHP dropped 0.8%, Fortescue Metals fell 2.3%, and Rio Tinto declined 1.3%.
Major banks also recorded losses, with ANZ down 1%, Commonwealth Bank down 0.7%, National Australia Bank down 0.5%, and Westpac down 0.3%.
Conversely, Myer shares surged 20.2% following merger talks with Premier Investment's apparel business, which saw Premier shares rise by 6.9%. Metcash fell 2.4% after reporting an 8.2% drop in profit, despite a slight increase in revenue.
Cleanaway Waste Management shares increased by 2.2% after announcing the acquisition of Citywide Service Solutions' commercial waste division for $110 million.
Futures
The Dow Jones futures are pointing to a fall of 35 points.
The S&P 500 futures are pointing to a rise of 2.25 points.
The Nasdaq futures are pointing to a rise of 28.25 points.
The SPI futures are down 60 points.
Best and worst performers
The best-performing sector was Industrials, up 0.71 per cent. The worst-performing sector was Energy, down 1.86 per cent.
The best-performing large cap was Meridian Energy (ASX:MEZ), closing 3.05 per cent higher at $5.75. It was followed by shares in Qube Holdings (ASX:QUB) and Incitec Pivot (ASX:IPL).
The worst-performing large cap was ResMed (ASX:RMD), closing 13.20 per cent lower at $27.74. It was followed by shares in Evolution Mining (ASX:EVN) and Whitehaven Coal (ASX:WHC).
Asian markets
Japan's Nikkei has gained 0.54 per cent.
Hong Kong's Hang Seng has lost 0.72 per cent.
China's Shanghai Composite has lost 0.18 per cent.
Commodities and the dollar
Gold is trading at US$2,334.60 an ounce.
Iron ore is 1.5 per cent lower at US$105.10 a tonne.
Iron ore futures are pointing to a 2.8 per cent fall.
Light crude is trading $0.12 lower at US$80.61 a barrel.
One Australian dollar is buying 66.44 US cents.
