• ASX finished Friday flat
  • 9 out of 11 sectors rose, but Energy fell by 2.5% as oil prices dip in Asian hours
  • Australia’s home prices fell by 0.6% in June according to CoreLogic

 

Local shares struggled to make any grounds today, finishing flat, despite 9 out of 11 sectors finishing in the green. For the week, the ASX 200 was down 0.23%.

Real Estate stocks led today’s gains even as national home prices fell for the second month in a row according to data from CoreLogic.

Home prices across Australia fell by 0.6% in June, led by declines in big cities like Sydney (-1.6%), Melbourne (-1.1%), and Hobart (-0.2%).

“We are seeing the higher cost of debt along with super-high inflation and lower confidence all feeding through to less housing demand in the marketplace,” said CoreLogic Research Director, Tim Lawless.

“So it’s definitely increasing the level of decline, and we are starting to see more and more cities quite clearly losing steam in the rate of growth in housing values.

“But we’ve also seen a fairly sharp reduction in the number of home sales as fewer people are active in the market, and an increase in listing numbers,” he added.

The Energy sector meanwhile has offset the gains made by other sectors, falling by 2.5% on the back of weak oil prices.

Brent crude has fallen rapidly in Asian hours, trading now at US$108.40 a barrel and is heading toward its third weekly loss.

The OPEC+ meeting, which concluded overnight with members agreeing to the same output for August as previously announced (648,000 barrels per day), didn’t have much sway on prices as lingering fears of a recession continue to dominate sentiment.

Other commodity prices like iron ore are also unable to escape the broader risk selloff, as prices tumbled by a further 2% overnight.

The Aussie dollar, which is highly correlated to commodity prices, is currently trading at a 2-year low of US 68.2c.

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Austal (ASX:ASB) rose 25% after being awarded a contract by the US Coast Guard Service with a potential value of $US3.3 billion.

Imugene (ASX:IMU) led the large caps, up by 9% after announcing the appointment of Dr Sharon Yavrom as Executive Director, Clinical Scientist, effective today. IMU says Dr. Yavrom is an accomplished clinical scientist with nearly 20 years of industry experience in both established and emerging pharmaceutical companies.

 

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