A fall in key commodity and oil prices hit the Australian sharemarket on Thursday, dragging the index lower, even as the majority of shares finished in the green.
The benchmark ASX 200 dropped 59.70 points or 0.68 per cent to 8748.70, while the broader All Ordinaries dragged 61 points or 0.68 per cent to 8951.60.
The Australian dollar slipped further on Thursday to buy 68.90 US cents.
Seven of the 11 sectors finished higher despite the market falling.
On Wednesday the dollar dropped to an 11-week low due to the US Federal Reserve signalling further rate hikes.
Leading the gain were healthcare stocks as vaccines giant CSL rallied 2.31 per cent to $117.65, while Sigma Healthcare jumped 2.56 per cent to $2.80 and Pro Medicus lifted 3.58 per cent to $185.39.
Consumer discretionary shares also jumped on Thursday, as Wesfarmers closed 2.52 per cent higher at $89.47, JB Hi Fi soared 4.08 per cent to $81.60 and Harvey Norman rallied 2.32 per cent to $4.86.
But the gains in the healthcare and consumer discretionary sectors were offset by big falls in commodity prices.
BHP shares slumped 1.65 per cent to $58.52, Rio Tinto dropped 2.26 per cent to $169.99 and Fortescue Metals traded in the red down 1.61 per cent to $18.94.
Gold producers were also hit on Thursday as the price of the precious metal fell back below $US4000 ($A5803) an ounce.
Northern Star Resources fell 3.25 per cent to $19.92, Evolution Mining dragged 3.81 per cent to $11.88 and Newmont Corporation dropped 3.05 per cent to $134.37.
IG market analyst Tony Sycamore said Australia’s fall follows potential rate hikes in the United States.
“Thursday’s selling pressure in the ASX200 was driven by two profit warnings and a renewed slide in key commodity prices, triggered by last week’s hawkish Federal Open Market Committee meeting that has given the US dollar a real boost.
“Commodity prices are negatively correlated with the US dollar, and this resulted in the heavy weight Materials sector falling for a sixth consecutive session,” he said.
Domestic economic news also hit the ASX 200 as investors weigh up what it might mean for the future of Australian interest rates.
Australian Bureau of Statistics (ABS) data shows unemployment fell to 4.4 per cent, with an extra 40,300 people in the workforce versus 18,300 people who lost their job.
This followed mixed news on inflation released on Wednesday as the headline rate cooled to 4 per cent in May down from 4.2 per cent in April.
At the same time the trimmed mean inflation rate – which avoids volatile items – added 0.2 per cent to 3.6 per cent over the last 12-months.
Global X investment strategist Justin Lin said the jobs and inflation figures have amplified the rotation into equities exposed to the domestic economy.
“A steady unemployment rate and strong job gains have eased concerns about slowing Australian growth, encouraging investors to shift away from defensive and commodity exposures,” he said.
“We think this reaction is likely overdone.”
In company news, Judo shares were absolutely belted as it crashed 40.39 per cent to $0.915 after announcing a profit guidance downgrade.
The challenger bank said FY26 profit before tax is expected to be between $163m and $169m, down from $180m and $190m it had guided in late April, while it warned that the cost of risk is up to between $116m to $122m.
Shares in dairy and baby formula provider A2Milk company jumped 3.65 per cent to $7.10 after giving shareholders $300m in a special dividend after it secured key regulatory approval with a Chinese regulator.
Mineral Resources dropped 1.72 per cent to $64.14 after it told the market its Lucky Bay garnet project in Western Australia would close, impacting 110 roles, after owning the site for less than a year.
