Heavy declines posted by resources stocks dragged the Australian sharemarket to a seven-week low on Wednesday amid concerns that aggressive rate rises will weigh on global growth and weaken demand for commodities.
in the June quarter, lifting annual GDP growth to 3.6 per cent, according to figures released by the Australian Bureau of Statistics. “The domestic economy remains vulnerable to global influences such as rising energy and food prices and a slowdown in the world’s largest economy, the US. Chinese growth too is slowing with ongoing shutdowns.”
“We find it difficult to be overly optimistic about the sector with potential credit-quality concerns, demanding pre-provision valuations, and elevated multiples relative to global peers,” Macquarie analysts said. Group sales rose 8.9 per cent in the 17 weeks to August 28, with food sales increasing 4.3 per cent and supermarket sales climbed 3.4 per cent, both inclusive of tobacco. The stock rose 0.5 per cent to $4.14.