AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.00 Decreased By ▼ -0.53 (-0.41%)
BOP 6.76 Increased By ▲ 0.08 (1.2%)
CNERGY 4.50 Decreased By ▼ -0.13 (-2.81%)
DCL 8.70 Decreased By ▼ -0.24 (-2.68%)
DFML 41.00 Decreased By ▼ -0.69 (-1.66%)
DGKC 81.30 Decreased By ▼ -2.47 (-2.95%)
FCCL 32.68 Decreased By ▼ -0.09 (-0.27%)
FFBL 74.25 Decreased By ▼ -1.22 (-1.62%)
FFL 11.75 Increased By ▲ 0.28 (2.44%)
HUBC 110.03 Decreased By ▼ -0.52 (-0.47%)
HUMNL 13.80 Decreased By ▼ -0.76 (-5.22%)
KEL 5.29 Decreased By ▼ -0.10 (-1.86%)
KOSM 7.63 Decreased By ▼ -0.77 (-9.17%)
MLCF 38.35 Decreased By ▼ -1.44 (-3.62%)
NBP 63.70 Increased By ▲ 3.41 (5.66%)
OGDC 194.88 Decreased By ▼ -4.78 (-2.39%)
PAEL 25.75 Decreased By ▼ -0.90 (-3.38%)
PIBTL 7.37 Decreased By ▼ -0.29 (-3.79%)
PPL 155.74 Decreased By ▼ -2.18 (-1.38%)
PRL 25.70 Decreased By ▼ -1.03 (-3.85%)
PTC 17.56 Decreased By ▼ -0.90 (-4.88%)
SEARL 78.71 Decreased By ▼ -3.73 (-4.52%)
TELE 7.88 Decreased By ▼ -0.43 (-5.17%)
TOMCL 33.61 Decreased By ▼ -0.90 (-2.61%)
TPLP 8.41 Decreased By ▼ -0.65 (-7.17%)
TREET 16.26 Decreased By ▼ -1.21 (-6.93%)
TRG 58.60 Decreased By ▼ -2.72 (-4.44%)
UNITY 27.51 Increased By ▲ 0.08 (0.29%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,450 Increased By 43.4 (0.42%)
BR30 31,209 Decreased By -504.2 (-1.59%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

Australian shares extended losses to a fourth day on Wednesday as investors waited to see how aggressively the US central bank would raise interest rates to contain rising inflation.

The S&P/ASX 200 index closed about 1.3% lower at 6,601 in broad-based selling, falling deeper into correction territory. Investors are pricing in an outsized 75-basis-point rate hike by the US Federal Reserve after red-hot inflation data last week, a move that many fear could spur a recession.

“We are in a bear market and that will remain the main trend till the US Fed stops hiking,” said Mathan Somasundaram, chief executive officer at Deep Data Analytics said.

Adding to the downbeat mood, Reserve Bank of Australia Governor Philip Lowe warned that inflation could reach 7% by the end of the year, higher than its prior forecast of 5.9%.

The comment came at a time when markets were already nervous about an outsized Fed rate hike, said Kerry Craig, a global strategist from J.P. Morgan.

Energy stocks led losses on the benchmark index, as Brent prices dropped over demand concerns. Woodside Energy Group and Santos Ltd fell 3.1% and 1%, respectively.

Australian shares plunge over 5% on inflation, China COVID worries

Technology stocks tracked their US peers lower to fall 3.1%. Xero Ltd and ASX-listed shares of Block Inc dropped 5.2% and 7.1%, respectively.

Miners retreated nearly 1%, extending falls to a fourth session.

In other news, the Australian Federal Court approved US private equity firm Blackstone Inc’s $6.3 billion acquisition of casino operator Crown Resorts Ltd. Shares of Crown Resorts inched 0.3% higher.

New Zealand’s benchmark S&P/NZX 50 index fell about 0.1% to 10,635.9.

Comments

Comments are closed.