The tech sector weighed on the local sharemarket, while A2 Milk shares hit a one-year low after China’s falling birth rate hurt revenues.
The local sharemarket retreated on Monday, tracking a sombre mood across Asia after China’s central bank disappointed investors with a smaller rate cut than hoped to support a deteriorating economy.
The information technology sector was the worst performer on the ASX 200 along with consumer stables. Iress was the biggest laggard, with its shares plunging 35.6 per cent to a record low of $6.44, after the company suspended its interim dividend following the sale of its managed funds administration unit.
It was also a heavy session for IAG, which closed down 0.9 per cent to $5.79. The insurer disclosed it had $7 billion in legal claims stemming from insurance written by a former commercial partner, most of which is represented by policies issued to collapsed financier Greensill Capital. The news overshadowed a jump in IAG profits.
Steel manufacturer BlueScope rallied 3.4 per cent to $21.27, following its commitment for a $1.15 billion reline of one of the blast furnaces at its Port Kembla steelworks.Charter Hall lifted 3.6 per cent to $10.77 after the property fund manager reassured investors that it would increase distributions in the coming year despite a sharp drop in annual earnings. The company said it was confident it can weather a choppy commercial property market and rising rates.
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