Lower than expected GDP growth kept the Australian stock market in the red on Wednesday (4 December).
The S&P/ASX 200 slid 32.60 points, or 0.38%, to 8,462.60 points by the closing bell.
Over the last five days, the index has gained 0.66% and is currently 0.61% off its 52-week high.
Australia’s third-quarter GDP rose 0.3% quarter over quarter, which ANZ senior economist Adelaide Timbrell says is below expectations, with annual growth down to 0.8% year over year – the lowest since the 1990s recession, aside from the pandemic.
“Upward revisions in the household savings ratio and discretionary spending in previous quarters suggest that household finances are not as weak as previously indicated by the data,” Timbrell notes.
“This may reduce the significance of the weak Q3 GDP headline numbers for the RBA.”
Household consumption was flat, while a rise in the household savings ratio to 3.2% point to households banking most of the additional disposable income from stage-three tax cuts.
Eight of the 11 sectors closed lower, with materials, energy and information technology the exceptions. Materials gained 0.63%, while energy edged up 0.37%
The miners led the S&P/ASX 200 higher, with Lynas Rare Earths (ASX:LYC) retaining its top spot on a 5.17% jump to $7.33. Gold major Newmont (ASX:NEM) rallied 3.27% to $64.92, Champion Iron (ASX:CIA) added 2.76% to close at $5.96 and Iluka Resources (ASX:ILU) advanced 2.72% to $5.67.
The lithium miners found themselves out in the cold, with Mineral Resources (ASX:MIN) sliding 4.18% to $35.12 and Pilbara Minerals (ASX:PLS) declining 4% to $2.40.
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & Stock
