Australian shares slip after days of gains

Derek Rose | December 21, 2023

The Australian share market is slightly lower on profit-taking after eight days of gains in nine sessions left shares at their best collective level since February.

At midday AEDT on Thursday, the benchmark S&P/ASX200 index was down 25.5 points, or 0.34 per cent, to 7,512.4, while the broader All Ordinaries was down 27.4 points, or 0.35 per cent, to 7,736.6.

On Wall Street overnight the S&P500 dropped 1.5 per cent, its first day of losses in its past 10 sessions.

Nine of the ASX’s 11 sectors were lower at midday, while industrials and utilities had each gained 0.6 per cent.

Tech was the biggest loser, falling 1.1 per cent as Xero dropped 1.3 per cent and Technology One fell 1.4 per cent.

The heavyweight mining sector was 0.5 per cent lower, with BHP dipping 0.3 per cent while Fortescue added 0.4 per cent and Rio Tinto rose 0.6 per cent.

Liontown Resources was the biggest loser in the ASX200 at midday, dropping 8.3 per cent to $1.54 after a private royalty holder filed legal proceedings asking for a greater share of upcoming royalties from Liontown’s Kathleen Valley Lithium Project in Western Australia.

Fellow lithium miner Allkem dropped 5.2 per cent to $9.865 as its merger with US-based Livent became legally effective.

Allkem shares will be delisted following the close of trading Thursday, and replaced with shares in the new company, Arcadium Lithium.

The big four banks were mostly lower, with CBA down 0.7 per cent, Westpac and NAB both dipping 0.2 per cent, and ANZ flat at $25.82 as the bank held its annual general meeting in Brisbane.

The Australian dollar was buying 67.46 US cents, from 67.66 US cents at Wednesday’s ASX close.