Australia Market extends gain on inflation reprieve

Australia stock market finished session higher on Wednesday, 30 November 2022, as risk sentiments strengthened on the back softer than expected inflation data, with shares of energy, materials, realty, and tech stocks leading rally.

At closing bell, the benchmark S&P/ASX200 index was up 30.86 points, or 0.43%, to 7,284.17. The broader All Ordinaries index added 38.62 points, or 0.52%, to 7,480.65.

The top performing stocks in S&P/ASX200 index were SAYONA MINING LIMITED and WHITEHAVEN COAL LIMITED, up 12.20% and 8.42% respectively. The bottom performing stocks in S&P/ASX200 index were ST BARBARA and COOLINS FOODS, down 6.2% and 4.9% respectively.

Market risk sentiment was buoyed by data from the Australian Bureau of Statistics showing that at an annual rate, inflation edged down from 7.3% in September to 6.9% last month. The lower-than-expected reading sparked hopes the Reserve Bank could soon pause its cycle of rate hikes.

However, market gains were limited amid China's stance to stick with its strict "zero-COVID" policy despite rare nationwide protests and ahead of U.S. Federal Reserve Chairman Jerome Powell's speech for clues on the direction of monetary policy.

Shares of coal miners advanced, with Whitehaven, New Hope and Yancoal climbing 8.4%, 6.8% and 3.3%, respectively, amid rising demand for the fossil fuel as the Northern Hemisphere heads into winter.

Shares of materials were up thanks to strong base metal prices. BHP climbed 1.6%, Rio Tinto added 1.7% and Mineral Resources jumped 4.4%.

Shares of consumer staples closed in the red, with supermarket giants Woolworths and Coles down 1.5% and 0.6%, respectively.

CURRENCY NEWS: The Australian dollar was up 0.7% at $0.6726 against greenback after trading in range 06673-0.6730 on Wednesday.

Powered by Capital Market - Live News