ASX struggles for direction

October 12, 2021 - 2 weeks ago
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The Australian share market struggled for the second consecutive day as the direction remains somewhat mixed.

Nine out of eleven sectors plummeted as Information Technology and Energy struggled throughout the seasons.

Mining giants BHP, Fortescue and Rio Tinto were about +1% higher earlier in the session before closing lower.

Australia’s business confidence has surged on the hope that roadmaps out of COVID-19 lockdowns will allow economic activity to rebound.

The National Australia Bank business survey for September showed confidence spiking 19 points to an index of plus 13 points, well above its long-run average.

In other news, Westpac revealed second-half profit would be down by $1.3 billion due to a series of items, which included a write-down of $965 million for assets of its overseas corporate banking arm. The full-year earnings are due on November 1.

Meanwhile, Telstra reaffirmed a return to growth in 2021/22 after cutting costs by $2.3 billion and chief executive Andy Penn said the company was on track to reach its target of $2.7 billion.

At the closing bell, the benchmark S&P/ASX 200 index dropped -19.1 points, or -0.26% to 7,280.7, while the All Ordinaries fell -25.5 points, or -0.34%, to 7,575.6, while our local currency, the Australian dollar, is currently buying US$0.7278.

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