Markets slide as punters take stock

THE Australian sharemarket fell for the second consecutive day but retailers were among some of the better performers after better-than-expected retail data.

The benchmark ASX 200 index slid below the 7000 point mark, finishing 0.29 per cent lower at 6997.5 while the All Ordinaries Index shed 0.32 per cent to 7258.9.

Australian stocks retreated after a negative lead from Wall Street over concerns about growing COVID-19 cases in some parts of the world.

But some big-name retailers bucked the trend.

Harvey Norman shares rose 0.7 per cent to $5.74, JB Hi-Fi added 0.8 per cent to $53.40 and Super Retail Group, owner of brands such as Rebel and Supercheap Auto, rallied 1.2 per cent to $12.45.

Australian retail turnover rose 1.4 per cent in March, seasonally adjusted, from February, according to preliminary figures from the Australian Bureau of Statistics. The market had expected a 1 per cent gain. Turnover rose 2.3 per cent when compared to March last year.

National Retail Association chief executive Dominique Lamb said on balance the data was good news but they also highlighted the current volatile economic conditions.

“When Australia came out of the initial lockdown after the pandemic first hit, we saw consumers really splash the cash,” she said. “But we’re now starting to see discretionary purchases slowly start to taper off from the record-high levels experienced towards the end of 2020.”

The ABS said the retail turnover rise in March was led by Victoria (4%) and Western Australia (5.5%), with both states rebounding from COVID-19 lockdowns.

Queensland, which saw a 3-day lockdown in March, saw a minor fall in turnover.

Cafes, restaurants and takeaway food services (6%) led the industry rises.

“Victoria and Western Australia showed a resurgence in March, no doubt influenced by the pent up demand caused by the hard lockdowns both states had in February,” she said.