Australia Market rebounds 1.9% from 4-months low

The Australian share market rebounded from four-month low on Thursday, 30 September 2021, recouping some of the losses in the previous two sessions, as investors chased for bottom fishing across the board, led by strong gains in mining and financial stocks.

However, market gains capped amid lingering concerns over the coronavirus situation in the country, particularly in New South Wales and Victoria which is hindering economic activity as two of the largest cities, Melbourne and Sydney, are still under lockdown. NSW has reported 941 new local cases of COVID-19 and six deaths on Wednesday. Victoria reported a record 1,438 new locally acquired cases and five deaths, with active cases now totalling 11,018 across the state.

At closing bell, the benchmark S&P/ASX200 surged by 135.45 points, or 1.88%, to 7,332.16. The broader All Ordinaries index spurted 129.49 points, or 1.73%, to 7,629.74.

All 11 sectors ended up along with the S&P/ASX 200 Index. Consumer Staples was the best performing sector, gaining +2.67%, meanwhile materials (up 2.4%), healthcare (up 2.2%), energy (up 2%), fiancials (up 2%), and industrials (up 1.9%) sectors were also notable gainers.

The top performing stocks in this index were ORICA and BEACH ENERGY, up 14.53% and 9.12% respectively. The bottom performing stocks in this index were PINNACLE INVESTMENT MANAGEMENT GROUP and AUSNET SERVICES, down 3.5% and 1.56% respectively.

Shares of materials and resources rebounded with a spike in iron ore futures. BHP Group added 3.5% and Rio Tinto rose 3.4%. South32 surged 4.1% after the company confirmed it was upping its stake in the Mozal aluminium project in Mozambique for $US250 million.

ECONOMIC NEWS: Australia Building Approvals Climb 6.8% On Month In August- Australia total number of building approvals was up a seasonally adjusted 6.8% on month in August, the Australian Bureau of Statistics said on Thursday, coming in at 18,716, following the 8.6% drop in July. On a yearly basis, building approvals spiked 31.2%.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 94.31 following a recent climb from below 94. The Australian dollar changed hands at $0.7189 after falling from above $0.728 earlier this week.

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