The Dusk Group Ltd (ASX: DSK) share price continued to dim throughout the month of June.
At market close on 31 May, the specialty retailer's shares last traded at $1.99 a pop. Fast forward to the end of June, its shares closed at $1.67, representing a decline of 16% for the month.
After falling into bargain territory, Dusk shares are staging a strong rebound today to zip 6.99% higher, back to $1.99 apiece.
Image source: Getty Images
What blew the wind out of Dusk shares?
Investors dragged down the Dusk share price amid negative sentiment across the ASX in June.
After inflation levels spiked to 5.1% during the March quarter, the Reserve Bank of Australia (RBA) decided to intervene.
The central bank tightened up its monetary policy by raising interest rates in a bid to cool down the rampant inflation.
The official cash rate rose by 0.5% last month and another 0.5% yesterday – which currently puts it at 1.35%.
Around the country, prices on consumer goods were noted to have surged at the fastest annual pace over the last 20 years.
What this means is that consumers are less likely to spend on discretionary items while interest rates are picking up. The cost of debt, such as credit cards as well as personal loans, requires extra payments which, in turn, affects consumer spending habits.
Nonetheless, a gloomy economic outlook is also weighing down the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector. The index fell 7% over the course of June.
While Dusk hasn't made any announcements recently, investors will be keeping a close eye on the upcoming monthly household spending report. This provides a clearer indication of household spending as well as the health of the country's economic growth.
Dusk share price snapshot
It has been a disappointing 12 months for the Dusk share price, falling by almost 50% for the period.
When looking year to date, the company's shares are down around 38%.
Based on today's price, Dusk commands a market capitalisation of roughly $115.82 million.
