Australia Market falls on profit booking, hotter inflation data

Australia stock market finished session lower on Wednesday, 25 January 2023, as profit booking resumed following gains in previous five days, and on rekindled worries over more interest rate hikes ahead after the Q4 inflation hit a peak of 7.8%, its highest since 1990.

At closing bell, the benchmark S&P/ASX200 index was down 22.10 points, or 0.29%, to 7,468.30. The broader All Ordinaries index dropped 22.46 points, or 0.29%, to 7,688.01.

Total 7 of 11 sectors ended lower along with the S&P/ASX 200 Index. Energy was worst performing sector, erasing 1.2%, followed by information technology (down 1.2%), materials (down 0.74%), and telecommunication services (down 0.7%). Utilities was the best performing sector, gaining 0.49%.

The top performing stocks in S&P/ASX200 index were NEWS CORP and MONADELPHOUs GROUP, up 6.25% and 5.38% respectively. The bottom performing stocks in S&P/ASX200 index were WEST AFRICAN RESOURCES and EVOLUTION MINING, down 7.48% and 5.87% respectively.

Materials and resources were lower. BHP fell 0.95% while Rio Tinto dropped 0.74%, while Fortescue edged 0.13% lower.

Shares oil and gas giant Woodside slid 1.17%. The energy giant's revenues fell 12% on the back of a fall in oil prices but announced it had surpassed its production guidance for 2022 after increasing output to record levels. ECONOMIC NEWS: Australia Annual Consumer Price Inflation Rises 7.8% In Q4- Consumer prices in Australia were up 7.8% on year in the fourth quarter of 2022, the Australian Bureau of Statistics said on Wednesday, accelerating from 7.3% in the three months prior. On a seasonally adjusted quarterly basis, inflation climbed 1.9%, up from 1.8% in Q3.

The Reserve Bank of Australia's trimmed mean was up 1.7% on quarter and 6.9% on year after rising 1.8% on quarter and 6.1% on year in the previous three months. The RBA's weighted median advanced 1.6% on quarter and 5.8% on year, up from 1.4% on quarter and 5% on year in the third quarter.

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