These companies can isolate portfolios from losses in a declining market as investors push in safe stocks and government bonds, sending returns higher but being receptive to the opposite.
Unibail Rodamco Westfield fell 6.2 percent to $ 4.82, the biggest drop among blue chips, while Mirvac Group, another real estate company, fell 3.7 percent to $ 2.82 and was among Friday’s 10 worst performers.
Among finances, Suncorp fell 2.5 percent to $ 11.72 and QBE fell 2.2 percent to $ 11.83, while NAB’s 2.5 percent fall to $ 28.71 was the worst among the four major banks.
Yields on the 3-year government bond, which expires in April 2024, rose five times to the RBA’s desired level this week as financial markets present estimates of interest rate hikes driven by rising consumer prices across the economy.
Tech stocks, which are sensitive to higher inflation, fell 1.7 percent on Friday. Higher inflation weakens the value of future earnings, which anchors the high valuation that many technology groups achieve relative to the market.
Megaport fell 4.2 percent to $ 17.91, while Xero fell 3 percent to $ 149.51.
Material companies, which include the large miners, fell 1 per cent. after a fall of 6 per cent. in the price of iron ore overnight. Energy shares fell 1.8 per cent. after rising pressure on oil prices, the West Texas Intermediate, the US oil benchmark, pushed down.
Healthcare, which was a lone holdout most of the day, finally succumbed in the late afternoon to trade 0.1 percent lower at closing despite positive news from ResMed, one of the largest companies in the sector.
The sleep apnea device maker reported a 20 percent increase in sales to $ 1.2 billion for the September quarter, and its shares rose 4.2 percent Friday to $ 37.17.
GUD Holdings led the market up 6.9 percent to $ 12.20, ahead of a 5.6 percent boost to Reece shares following news Thursday that the company’s sales rose 13 percent to $ 1.8 billion in the quarter in September .