Australian sharemarket falls for fifth day despite surging healthcare stocks, record BHP profit

Surging healthcare stocks and a boost from the world largest miner was unable to lift the Australia sharemarket on Tuesday – which has now fallen for five straight trading sessions.

The benchmark ASX200 slipped by 3.20 points or 0.04 per cent, to 9070.00, while the broader All Ordinaries also taking a drop of 4.80 points, or 0.05 per cent, to 9274.20

The healthcare sector lead the way, booming to a finish of 7.81 per cent, while the energy sector was up 0.99 per cent.

The materials sector rose thanks to results from BHP, which closed 2.65 per cent higher to $63.85, while other major miners Rio Tinto slid 0.55 per cent to 167.40 and Fortescue dragged 0.39 per cent to $17.68.

Despite this success, the price of copper finished down by 0.55 per cent to $6.57

Healthcare heavyweight CSL lead the charge for the healthcare sector, despite recording significant losses, while Cochlear shares also rallied 7.58 per cent to $141.20 on a strong earnings update.

Pro Medicus also boomed by 11.88 per cent to $196.75, following the release of their annual report which recorded a 24.1 per cent underlying profit of $144.7m.

Implant company Cochlear also reported major growth with a 7.58 per cent increase to $141.20.

VanEck deputy head of investments and capital markets Jamie Hannah said the uptick in CSL was surprising, coming off the back of strained results in their annual report.

“(CSL) were slightly ahead of expectations, but the markets really picked up on the fact that they’re looking to grow next year … and it’s pushed them up a huge amount, nearly offsetting the entire fall for the year.”

“It’s quite incredible. I think you have to question whether or not the earnings results are reflective of the movements that we’re seeing on the market. Certainly for this earning season.”

“It’s adding a lot of onus on companies to perform, otherwise they’re punished quite heavily on the market.”

Mr Hannah said the spike in the energy sector was likely caused by a spike in oil prices and strong increases reported from the mining company.

“The oil price hit $91 US. So that always produces an uptick in energy stocks generally,” he said.