ASX ends 7-day losing streak, gains 1.4pct

The Australian share market has finally snapped its seven-session losing streak amid a lift in global sentiment.

The benchmark S&P/ASX200 index on Tuesday closed up 90.4 points to 6,523.8, a rise of 1.41 per cent. The broader All Ordinaries closed up 91.3 points to 6,700.8, a 1.38 per cent rise.

It was the best day for the ASX200 since a 1.45 per cent rise on May 30 and only the index’s fourth winning session since then.

European markets also rose and the US futures indicated they would open higher after being closed for a holiday on Monday.

“There is no doubt that the equity markets on both sides of the world have been massively oversold, bargain hunters have been preparing their lists for a while, and now they are out shopping,” said Avatrade chief market analyst Naeem Aslam.

Australian sentiment was also aided by the Reserve Bank, with governor Philip Lowe telling business leaders in Sydney the cash rate was unlikely to hit four per cent by year-end as market pricing has been suggesting, and that he didn’t see a recession on the horizon.

Eight of the exchange’s 11 sectors closed higher, with energy up the most, by 2.8 per cent as oil and coal prices rallied. Woodside Energy climbed 3.3 per cent to $31.14, Santos gained 1.2 per cent and Whitehaven Coal rose 5.3 per cent.

A lift in iron ore prices helped the materials sector move 1.6 per cent higher.

BHP rose 1.7 per cent to $40.95, Rio Tinto added 2.3 per cent to $103.90 and Fortescue Metals added 3.5 per cent to $17.59.

Goldminers were mixed, with Newcrest up 0.4 per cent, Northern Star adding 0.5 per cent but Evolution down 0.6 per cent.

Lithium miners were generally higher, with Pilbara up 3.9 per cent and Allkem gaining 3.6 per cent, but Lake Resources plunged 28.4 per cent and Core Lithium retreated by 6.5 per cent as turbulence in the battery metals space continued.

All the big banks advanced as Mr Lowe seemed to dismiss the chances of a 75 basis point rate hike next month, with the financial sector as a whole enjoying a 2.7 per cent rise, its best day in three months.

NAB climbed by 3.8 per cent to $27.05, ANZ added 2.6 per cent to $21.95, Westpac gained 2.7 per cent to $19.71 and CBA advanced 2.4 per cent to $89.67.

Graincorp added 5.0 per cent to $9.54 after reaffirming full-year guidance of $590 million to $670 million in EBITDA.

Tabcorp was up 1.0 per cent to $1.065 after the NSW government announced as part of the 2022/23 state budget that it would raise taxes on online wagering operators.

Chief executive Adam Rytenskild said it was a “positive step forward in levelling the playing field” between Tabcorp and online bookmakers who pay less tax.

Reece Pharmaceuticals was up 16.8 per cent to 66 cents after a phase one study of its next-generation antibiotic candidate Reece 327 concluded without adverse side effects in 10 test subjects.

The Australian dollar meanwhile was buying 69.71 US cents, down from 69.76 US cents at Monday’s close.


* The benchmark S&P/ASX200 index closed up 90.4 points, or 1.41 per cent higher, at 6,523.8 on Tuesday.

* The broader All Ordinaries gained 91.3 points or 1.38 per cent to 6,700.8.


One Australian dollar buys:

* 69.71 US cents, from 69.76 US cents at Monday’s close

* 94.21 Japanese yen, from 94.12 yen

* 66.15 Euro cents, from 66.27 cents

* 56.70 British pence, from 57.01 pence

* 109.78 NZ cents, from 110.03 cents

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