Australia Market extends gain to 2nd day

The Australian share market finished higher for second straight session on Wednesday, 08 December 2021, as investors took heart from overnight climb of Wall Street on receding concerns over the severity of the Omicron variant of the novel coronavirus. Market sentiment was further lifted up after the central bank retained interest rates at 0.1%, keeping the economy flush with cash to allow a full economic recovery from the pandemic. Most of ASX sectors advanced, with shares in mining and energy companies being notable gainers on sharp rises in iron ore and oil prices, buoyed by hopes of limited disruption from the Omicron coronavirus variant.

At closing bell, the benchmark S&P/ASX200 rose 91.55 points, or 1.25%, to 7,405.45. The broader All Ordinaries index added 101.97 points, or 1.34%, to 7,707.20.

All 11 sectors ended higher along with the S&P/ASX 200 Index. Telecommunications Services was the best performing sector, gaining +2.17%, followed by information technology (up 2.15%), materials (up 2.14%), energy (up 1.46%), and consumer discretionary (up 1.23%) sectors.

The top performing stocks in this index were ZIP CO and MESOBLAST, up 10.9% and 10% respectively. The bottom performing stocks in this index were STEADFAST GROUP and POLYNOVO, down 4% and 2.7% respectively.

Shares of technology companies rose on tracking a strong overnight session on Wall Street, with Zip Co hit a 2-week high after the buy-now-pay-later firm reported strong transaction volumes for November.

Shares of materials and resources closed higher, benefiting from a jump in iron ore prices as easing monetary policy in leading consumer China boosted demand for ferrous materials. Global miner Rio Tinto rose 2.2%, while shares of Fortescue Metals Group jumped 3.3%.

Financials climbed, with the "Big Four" banks rising between 0.3 and 1%, as the Reserve Bank of Australia on Tuesday left its cash rate at a record low, and stuck with its bond-buying plans, but adjusted its policy statement to allow for a possible increase before 2023.

CURRENCY NEWS: The Australian dollar was at $0.7129, continuing its ascent in the past week.

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