🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Australia shares end lower with energy stocks battered by plunging crude futures

Published 20/04/2020, 05:21 pm
© Reuters.
AXJO
-
GS
-
CSL
-
AGG
-
Caltex Australia Limited
-
NCM
-
RHC
-
STO
-
WDS
-
CL
-
AXGD
-
AXMM
-
AXEJ
-
AXHJ
-
SYD
-
ATDb
-
NZ50
-

* Energy stocks clock worst day in over 3 weeks

* Caltex plunges after Couche-Tard scraps offer

* Healthcare stocks see worst session in nearly 3 weeks

* NZ ends lower, snaps four-session gaining streak (Updates to close)

By Arpit Nayak

April 20 (Reuters) - Australian shares finished lower on Monday weighed by energy stocks, as concerns over a slump in oil demand due to the coronavirus pandemic drove the energy sub-index to its worst session in more than three weeks.

The S&P/ASX 200 index .AXJO fell 2.5% or 134.50 points to 5,353.00 at the close of trade.

The energy sub-index .AXEJ suffered a 4.6% drop as U.S. crude oil futures plunged to their lowest levels since 1999. Concerns mounted over whether U.S. storage facilities would soon reach capacity. O/R

"Oil names (are) looking sickly here today," RBC Capital Markets' head of equities Karen Jorritsma wrote in a note.

Jorritsma added that, as oil prices remain far below production costs for many producers, "at current levels, the entire industry is out of the money".

Industry giants Woodside Petroleum WPL.AX and Santos STO.AX lost 4.4% and 3.7%, respectively.

Caltex Australia CTX.AX shares plunged 7.8% after Canadian company Alimentation Couche-Tard ATDb.TO scrapped its takeover bid for the petrol station operator, citing coronavirus-related uncertainties. Sydney Airport Holdings SYD.AX eased 2.9%, hurt by a more than 45% drop in passenger traffic in March. The airport operator said data for the first 16 days of April showed traffic had slowed to a trickle. stocks .AXHJ settled 3.1% lower, with heavyweight CSL CSL.AX sliding 3.8% and hospital operator Ramsay Health Care RHC.AX dropping 2.5%.

Miners .AXMM were weighed down by a 2.3% fall in gold stocks .AXGD as the bullion price weakened amid doubts over the United States' plans to reopen its economy. GOL/

Gold producer Newcrest Mining NCM.AX and Australian-listed shares of AngloGold Ashanti AGG.AX lost 3.8% and 2.3%, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 0.1% or 16.05 points to finish the session at 10,762.67 after starting the day in positive territory.

Prime Minister Jacinda Ardern said the country would loosen some of its virus-driven lockdown measures next week after a month of strict restrictions. data showed consumer inflation came in higher-than-expected in the first quarter. the market is placing little weight on the first quarter inflation figures, which largely predate the COVID-19 lockdowns, analysts at Goldman Sachs (NYSE:GS) said in a note.

"... we continue to expect a large rise in unemployment and associated fall in demand will outweigh any supply-side effects on inflation over the course of 2020," they wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.