The Australian share market finished session lower on Wednesday, 27 January 2021, as investors elected to book recent profit on caution ahead of inflation data and outcome of the U.S. Federal Reserve meeting. Most of ASX sectors declined, with shares of materials and energy sectors being notable losers. At closing bell, the benchmark S&P/ASX200 declined 44.15 points, or 0.65%, to 6,780.57. The broader All Ordinaries dropped 51.23 points, or 0.72%, to 7,060.16. Markets were closed on Tuesday for a public holiday. Shares of material sector declined on falling iron ore prices, with BHP and Rio Tinto losing 3-4%. Smaller rival Fortescue Metals Group slumped 6.4% ahead of its quarterly production results. Energy stocks also ended broadly, lower, with Woodside Petroleum, Santos and Beach Energy giving up 3-5%. Oil Search lost 3.3% after it reported an almost 42% drop in fourth-quarter revenue. ECONOMIC NEWS: Australia NAB Business Conditions Indicate Strong Economic Recovery- Australia's business conditions index came in at 14 in December, the highest since September 2018, and above November's score of 7, signaling a strong momentum in the economic recovery, survey results from the National Australia Bank showed Wednesday. Meanwhile, the business confidence index fell to 4 in December from 13 in November. This likely reflects the impact of the Sydney Covid-19 outbreak through December. The employment conditions index was back in positive territory for the first time since the start of the pandemic. The index for trading climbed 5 points, while profitability edged down 2 points. Nonetheless, all three sub-indices were above average, for the first time since early 2019. Capacity utilization returned to around pre-virus levels, rising to 80.9 percent from 79.1 percent in December, following the further gains in businesses conditions. At the same time, forward orders and capex remained subdued. CURRENCY NEWS: The Australian dollar changed hands at $0.7739 after rising from levels around $0.768 yesterday. Powered by Capital Market - Live News |