ASX Drops in Early Trade, Banks Extend Losses

australian financial review2022-06-09

The S&P/ASX 200 is down 0.7 per cent, or 47.8 points, to 7073.3 in the opening minutes of trade, with banks extending losses.

Financial stocks were the biggest laggard, down 2.4 per cent, followed by real estate.

All four major banks dropped between 2 per cent and 4 per cent after the Reserve Bank’s larger-than-expected interest rate rise earlier this week fuelled fears about their profit margins if bad loans increased. Westpac was among the index’s biggest losers, down 4 per cent to $21.1.

Magellan shares rose 2.7 per cent to $12.89 after co-founder Hamish Douglass announcing he will take a consultancy role within the company and cease being a staff member from next week.

Mining giants were mixed with BHP Group up 0.1 per cent to $47.44 and Rio Tinto 0.3 per cent higher at $119.28 but Fortescue dipped 0.1 per cent to $21.6.

The energy sector was among the four categories in the black, up 1.3 per cent, followed by heath stocks up 0.4 per cent.

Shares in Aurizon fell 1.3 per cent to $4.145 after the ACCC outlined its preliminary concerns about its planned acquisition of One Rail.

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Comments

  • Joyus
    2022-06-09
    Joyus
    👍
  • Dynamism
    2022-06-09
    Dynamism
    K
  • pekss
    2022-06-09
    pekss
    Hope the larger than expected rate hike is not going to happen after the FOMC meetingnext week.
  • k1wong
    2022-06-09
    k1wong
    K
  • AudTKH
    2022-06-09
    AudTKH
    K
  • Jameslim29
    2022-06-09
    Jameslim29
    Ok
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