The Australian share market has retreated from the record highs set last week, ending its seven-day winning streak on the eve of a Reserve Bank meeting on interest rates.
The benchmark S&P/ASX200 index on Monday finished down 56.6 points, or 0.69 per cent, to 8,152.9, while the broader All Ordinaries dipped 53 points, or 0.63 per cent, to 8,384.2.
It was a rough day for supermarkets after the competition regulator announced legal action against Coles and Woolworths. But uranium developers posted strong gains after a US utility announced plans to re-activate a notorious nuclear reactor to power artificial intelligence facilities.
Overall, eight of the ASX’s 11 sectors finished lower, with energy, technology, and utilities sectors closing higher.
Key Movers
- Consumer Staples Sector: The biggest mover, dropping 2.8 per cent as Woolworths fell 3.4 per cent to a six-week low of $33.79, and Coles retreated 3.3 per cent to a two-week low of $18.59 following legal claims. Woolworths said it would engage with the Australian Competition and Consumer Commission (ACCC) about allegations regarding its discounting practices, while Coles stated it would defend the proceedings.
- Other Retailers: Endeavour Group, Super Retail Group, and Harvey Norman all dropped 2.2 per cent, while JB Hi-Fi dipped 2.0 per cent, and Wesfarmers subtracted 1.7 per cent.
- Uranium Developers: After the announcement that the shuttered Three Mile Island nuclear plant in the US would be reactivated for Microsoft’s AI operations, uranium developers posted strong gains:
- Boss Energy: Up 8.2 per cent to $2.90.
- Deep Yellow: Climbed 5.1 per cent to $1.23.
- Paladin Energy: Added 4.7 per cent to $9.86.
- Helius: Gained 7.5 per cent to $1.73 after announcing plans to sell its diagnostic imaging business to Hong Kong-based private equity firm Affinity Equity Partners for $965 million.
- Mining Sector: In the heavyweight mining sector:
- BHP: Dropped 1.3 per cent to $39.81.
- Rio Tinto: Slid 0.6 per cent to $112.34.
- Fortescue: Added 0.3 per cent to $17.69.
- Big Four Banks: Finished mixed:
- CBA: Retreated 1.5 per cent to $142.39.
- ANZ: Dipped 0.6 per cent to $31.70.
- NAB: Edged 0.1 per cent higher to $39.70.
- Westpac: Edged 0.1 per cent higher to $33.61.
- Technology Sector: Appen rocketed 18.8 per cent to a one-year high of $2.09, having more than doubled this month after reaching a nadir of 27c in January.
Other Market News
In the consumer discretionary sector, a new company with a familiar name made its debut on the bourse on Monday. Shares in Webjet Group, trading under the ticker WJL, finished at 80c. The company is a spinoff of the business formerly known as Webjet Limited, which has renamed itself WEB Travel Group, a business-to-business platform serving the hotel industry. WEB’s shares finished down 10.7 per cent to $7.35, reflecting the loss of value from the spinoff.
Currency Update
The Australian dollar was buying 68.11 US cents, down from 68.20 US cents at Friday’s ASX close.
Outlook
The Reserve Bank is expected to leave rates on hold on Tuesday.
ASX Summary
- S&P/ASX200: Finished Monday down 56.6 points, or 0.69 per cent, at 8,152.9.
- All Ordinaries: Dropped 53 points, or 0.63 per cent, to 8,384.2.
- NZX 50: Lost 74.33 points (-0.60%) to 12,404.17.
- Nikkei: Gained 568.58 points (1.51%) to close at 37,723.91.
