Australia ASX200 closes above 7500 level

The Australian share market finished session higher on Wednesday, 04 August 2021, recouping most of the losses of the previous session, as investors chased for bargain buying on following the broadly positive cues overnight from Wall Street. Market gains was supported by strength in the 8 of 11 S&P/ASX 200 Index sectors, with materials, energy, and developers stocks being notable gainers.

At closing bell, the benchmark S&P/ASX200 advanced 28.72 points, or 0.38%, to 7,503.20. The broader All Ordinaries increased 28.20 points, or 0.36%, to 7,778.70.

Total 8 of 11 sectors ended higher along with the S&P/ASX 200 Index. Material was the best performing sector, gaining +1.18%. Meanwhile, energy (up 0.89%), real estate (up 0.71%) and consumer staples (up 0.49%) sectors were also notable gainers. On the other side, healthcare (down 0.45%) was worst performing sector.

Shares of materials and resources led market rally, with BHP rising 2.1% to a new record close of A$54.06. Rio Tinto gained 1.5% to a new peak of A$134.40. In the lithium sector Pilbara Minerals closed over A$2 for the first time ever while the Gina Rinehart-backed Vulcan Energy gained 15.9% to A$11.53.

Shares of crude oil producers closed higher despite crude prices falling to a two-week low on expectations of more travel lockdowns across Asia as the COVID Delta strain spreads into more regions. Woodside Petroleum was up 1% despite forecasting a 5% cost increase in the Scarborough project.Santos gained 0.6%, and Oil Search added 1%.

Shares of lenders closed mixed, with Commonwealth Bank up 0.8%, meanwhile both ANZ Bank and Westpac up 0.2%. National Australia Bank and Macquarie Bank stocks both declined.

ECONOMIC NEWS: The latest survey from Markit Economics showed on Wednesday that the services sector PMI in Australia fell into contraction territory score of 44.2 in July, down sharply from 56.8 in June and it falls firmly beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also said its composite index sank to 45.2 in July from 56.7 in June.

The Australian Bureau of Statistics also released report showing that the total value of retail sales in Australia was down a seasonally adjusted 1.8% on month in June, coming in at A$30.590 billion, following the 0.4% increase in May. On a yearly basis, retail sales were up 2.9%. For the second quarter of 2021, retail sales were up 0.8% on quarter and 9.2% on year at A$87.049 billion.

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