Consumer, energy sectors drag Australian shares lower; investors await growth data

Reuters
Sep 02
Consumer, energy sectors drag Australian shares lower; investors await growth data

Updates to close

ASX 200 end three consecutive sessions in red

Woolworths and Wesfarmers drop on ex-dividend trading

Q2 GDP data awaited

By Kumar Tanishk

Sept 2 (Reuters) - Australian shares ended lower in thin trading on Tuesday, dragged by consumer and energy sectors in which heavyweight constituents traded ex-dividend, as local traders stayed on the sidelines ahead of economic growth data due later in the week.

The S&P/ASX 200 index slipped 0.3% to 8,900.6 points, marking its third straight session in the red. Monday's 0.5% decline followed strong gains in August.

Consumer stocks .AXSJ lost 1.7%, with grocer Woolworths WOW.AX falling 3.1%. Conglomerate Wesfarmers WES.AX also slipped 2.9%, ranking among the top laggards in the consumer discretionary sub index .AXDJ, which was down nearly 2%.

Both stocks were trading ex-dividend.

Energy stocks .AXEJ lost 0.5% as oil and gas major Santos STO.AX shed 1.4% after going ex-dividend.

Healthcare stocks .AXHJ lost 0.8% after biotech firm CSL CSL.AX fell nearly 1% to its lowest level since mid-June 2019.

CSL, one of the country's largest companies, has tanked over 23% since August 19, weighing heavily on the healthcare sub-index and overall benchmark, after it announced plans to spin off its influenza vaccine division and cut up to 15% of its workforce.

Investors continue to desert the ASX200 healthcare sector after August and are moving into the financial sector for some refuge, said Tony Sycamore, a market analyst at IG.

Rate-sensitive financials .AXFJ rose 0.4%, with three among the 'Big Four' banks rising between 0.8% and 1%, helping arrest some losses.

Markets now await the country's second-quarter gross domestic product data on Wednesday to better gauge the Reserve Bank of Australia's $(RBA)$ monetary policy stance.

An in-line GDP "will support the case for further easing ... as it reaffirms the idea that the Australian economy is growing at a pace significantly below its potential growth rate of 2.5%-3%", Sycamore added.

Market swaps are currently pricing over an 80% probability that the RBA will hold rates steady later this month. 0#AUDIRPR

Miners .AXMM advanced 0.1% and gold stocks .AXGD climbed 0.4% tracking higher commodity prices. MET/L GOL/

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.5% to 13,133.16 points, posting its fourth consecutive session of gains.

(Reporting by Kumar Tanishk in Bengaluru; Editing by Janane Venkatraman)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))

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