Australian shares edge lower on thin order books
Weakness in financials, energy and IT stocks is weighing on the local bourse, as the local market shrugs off a Santa Claus rally on Wall Street.
The local bourse is creeping lower on the third last trading day of the year, with weak trading volumes offering precious little volatility.
The S&P/ASX200 eased 15 points by midday, down 0.17 per cent, to 8,747.7, as the broader All Ordinaries lost 17.4 points, or 0.19 per cent, to 9,051.6.
Local investors shrugged off a moderately positive Wall Street on Friday, when gold prices topped $US4,550 ($A6,773) an ounce for the first time.
“The Santa Claus rally is officially underway, with the S&P 500 already up around one per cent during this historically bullish seven-session stretch, which spans the last five trading days of the year and the first two of the New Year,” Moomoo market strategy consultant Greg Boland said.
“For now, trading volumes are expected to remain thin with many investors already thinking more about holidays than markets.”
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The heavyweight financials sector lost 0.3 per cent as three of the big four banks grinded lower, while ANZ eked a 0.2 per cent lift.
Materials stocks slipped 0.1 per cent, as gold stocks rolled over with the price of bullion, which retreated from Friday’s record to $US4,516 ($A6,724) an ounce.
Silver prices also hit a new peak early in Monday’s session, breaking above US$90 ($A112) an ounce for the first time before slipping back to $US76.60.
Large cap miners traded either side of break-even, as iron ore futures consolidated just below $US107 a tonne.
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Energy stocks tumbled 0.7 per cent, catching up with a slump in crude prices on Friday.
Santos shares dropped 1.4 per cent to $6.03, while Woodside lost 0.4 per cent, in a broad sector slump as coal producers and uranium stocks also fell behind.
The health care sector outperformed the broader market, up 0.6 per cent as blood plasma heavyweight CSL jumped 1.5 per cent to $174.11.
Health care has been 2025’s worst performing segment, down more than 23 per cent, impacted massively by CSL’s more than 38 per cent sell off over the last 12 months.
IT stocks faded 0.3 per cent, as WiseTech lost ground and Technology One tumbled more than one per cent.
Shares in semiconductor memory producer Weebit Nano rocketed more than 14 per cent after inking a licensing deal with Texas Instruments, providing an upgrade to Weebit’s revenue guidance.
The Australian dollar is buying 67.15 US cents, trading at its highest value since October 2024, boosted by improved risk sentiment, a weaker US dollar and higher commodity prices.
