:::LALKAR GROUP::::

Australia stock market finished the session steep lower on Wednesday, 31 May 2023, as selloff pressure triggered across the board, with energy, materials, and financial stocks leading retreat amid tumbling commodity prices and fears of further interest rate hikes by RBA after hotter-than-expected inflation figures.

At closing bell, the benchmark S&P/ASX200 index tanked 117.98 points, or 1.64%, to 7,091.30. The broader All Ordinaries index dropped 113.80 points, or 1.54%, to 7,273.50.

Total 10 of 11 sectors were lower along with the S&P/ASX 200 Index. Energy was the worst performing sector, falling 2.52%, followed by materials (down 2.18%), financial (down 2.03%), and consumer discretionary (down 1.93%) sectors.

The top performing stocks in the S&P/ASX 200 Index were IMUGENE and MEGAPORT, up 4.76% and 4.12% respectively. The bottom performing stocks in S&P/ASX200 index were WHITEHAVEN COAL and BANK OF QUEENSLAND, down 6.45% and 5.36% respectively.

Shares of energy sectors declined, with coal miners leading retreat after benchmark Newcastle coal futures plunged 12.1% overnight. Whitehaven (down 5.8%) and Yancoal (down 4.2%) fell. Oil producers also dropped as WTO crude oil fell below $70 a barrel on signals that supply is more than adequate to meet tepid demand. Woodside Petroleum (down 2.3%) and Santos (down 2.7%) both closed down.

Material stocks dropped after the iron ore price fell 1.5% overnight, with BHP (down 2.4%), Rio Tinto (down 2.1%) and Fortescue (down 2.9%) all closing lower.

Consumer discretionary stocks also came off on the prospect of higher interest rates biting consumer spending, with Wesfarmers shedding 3.1% and Aristocrat Leisure losing 1.1%.

ECONOMIC NEWS: The monthly Consumer Price Index (CPI) indicator rose 6.8% in the year to April 2023, according to the latest data from the Australian Bureau of Statistics (ABS). This month's annual increase of 6.8% is higher than the 6.3% annual rise reported in March 2023, but is below the high of 8.4% recorded in December 2022.

Separately, Australian Bureau of Statistics said on Wednesday that total value of construction work done in Australia was up a seasonally adjusted 1.8% on quarter at A$57.686 billion in the first quarter of 2023, following the 0.3% contraction in the three months prior. On a yearly basis, construction work done improved 5.1%.

Private sector credit in Australia was up 0.6% on month in April, the Reserve Bank of Australia said on Wednesday - accelerating from 0.2% in March. On a yearly basis, credit climbed 6.6%.

Housing credit was up 0.3% on month and 5.2% on year, while personal credit rose 0.1% on month and fell 0.3% on year and business credit jumped 1.1% on month and 10.6% on year. Broad money added 0.4% on month and 6.5% on year.

CURRENCY NEWS: The Australian dollar stood at 0.6495 against greenback, down 0.32% from previous trading day closure at 0.6517 after trading between range of 0.6483-0.6540.