Australia Market ekes out gain

Australian share market gave up early gains to finish session on a flat note on Monday, 23 May 2022, as global concerns continued to plague investors.

At closing bell, the benchmark S&P/ASX200 rose marginal 3.25 points, or 0.05%, to 7,148.89. The broader All Ordinaries index added 7.83 points, or 0.11%, to 7,398.88.

Market participants remained mired in negative sentiment amid concerns over of rising interest rates and inflationary pressures.

Meanwhile sentiments also dampened as parts of Beijing have again come under a lockdown amid signs the pandemic outbreak is spreading in more and more Chinese cities. The Chinese authorities have imposed a lockdown in the Haidian district along with Chaoyang, Fengtai, Shunyi, and Fangshan districts.

In Australia, the Labor Party ended a near 10-year rule of conservative government at a general election on the weekend While Labor has promised climate, housing, and enhanced social welfare reforms.

Shares of major miners benefited from the rise in iron ore prices. Fortescue added 2.8%, BHP rose 1.4%, and Rio Tinto advanced 1.1%.

Energy stocks also lifted up after an explosion in a South Korean refinery renewed supply concerns.

Codan shares advanced 14.5% after announcing that it still expects to report a record FY22 profit. The Company said that its DTC and Zetron acquisitions have been tracking ahead of schedule, and has also outlined a $41 million operating cash inflow so far in H2.

Elders rose 8.9% after upgrading its earnings guidance. The agribusiness has upgraded its earnings (EBIT) guidance and expects it to now be 30% - 40% higher than its FY21 EBIT

Imugene shares rose 12.5% following a letter to shareholders reassuring them that the company remains in a strong position despite its recent share price decline.

Incitec Pivot shares dropped 3.7% after announcing its plans to split into two separate ASX-listed companies.

CURRENCY NEWS: The Australian dollar strengthened and was last at $0.7106.

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