Australia: Shares hit three-month low on slowdown worries

AUSTRALIAN shares hit a more than three-month low on Monday, with investors staying away from riskier assets on fears of a global slowdown, as the US Federal Reserve maintained its hawkish monetary policy stance to fight red-hot inflation.

The S&P/ASX 200 index dropped as much as 1.9 per cent by 0022 GMT, its lowest since June 21. The benchmark hits its lowest in two months on Friday.

The market reflected a broader weakness, as investors continued to reposition themselves amid fears of an economic slowdown, after the Fed raised rates by another 75 basis points for the third consecutive time last week and warned of further increases.

Energy stocks were the top laggards and fell 5.2 per cent, their biggest drop in more than two months. Oil and gas majors Woodside Energy and Santos slipped 5.2 per cent and 4.7 per cent respectively.

Miners slid 4.5 per cent, hitting their lowest since July 25, with BHP and Rio Tinto dropping more than 3 per cent each.

Weak bullion prices dragged the gold sub-index down 4.9 per cent to hit a five-year low, with the country’s largest gold miner Newcrest Mining slipping 3.2 per cent.

Financials declined 1.4 per cent, with the “Big Four” banks down 0.8 per cent to 1.2 per cent.

Healthcare stocks were the only gainers, adding 0.2 per cent.

However, Ramsay Health Care dipped 5.1 per cent after the hospital operator said it would cease discussions with consortium led by KKR & Co on the buyout proposal.

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Australia: Shares hit over 2-month low after Fed hike; banks drag

Separately, Link Administration tumbled 6.7 per cent and was among the top losers on ASX, after its US$1.6b buyout by Canada’s Dye & Durham fell through on Friday.

Fruit grower Costa Group tumbled 11.8 per cent to its lowest since February 2016 and was the top loser on ASX after Sean Hallahan stepped down as chief executive officer and managing director.

Markets in New Zealand were closed due to a public holiday. The New Zealand benchmark fell 0.7 per cent on Friday. REUTERS