Australia's S&P/ASX 200 index closed slightly lower on Wednesday, September 27, 2023, despite a 5.2% jump in inflation that aligned with market expectations. The benchmark index edged down by 7.9 points, or 0.1%, to 7030.3 at the closing bell. The broader All Ordinaries index also slipped, losing 8.4 points to settle at 7299.9.
The market initially dropped at the open but surged after the release of the inflation data. However, the tech sector, sensitive to interest rates, continued its downward trend amid prospects of a persistently high cash rate in Australia. Tech companies such as Life360, WiseTech, and Xero saw their shares drop by 1.7%, 1.6%, and 1.3% respectively, extending losses from Tuesday.
In company news, shares of casino operator Star Entertainment plunged 15.3% to a record low upon resuming trade after a halt. The company recently raised $565 million through an institutional entitlement offer. Meanwhile, gold producer Silver Lake also saw its share value decline.
On the other hand, shares in Tamboran Resources rallied 11.5% after the Beetaloo Basin gas explorer announced its first estimate of resources. Likewise, sleep devices company ResMed was among the top performers of the day with shares rallying by 4.8%. The surge followed a report from Goldman Sachs suggesting that weight loss drugs would have a smaller impact on the obstructive sleep apnea market than previously expected.
In other corporate developments, liquor store chain operator Endeavour edged up 0.4%. The company's board recommended that its shareholders vote against the election of former Myer chairman Bill Wavish as an independent non-executive director. This recommendation came after the Australian Financial Review reported that Wavish was attempting a boardroom run at Endeavour with the support of the hotel and liquor chain group's biggest shareholder, Bruce Mathieson.
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