Australia Market rebounds on calming rate hike fears

Australia stock market finished session in the positive territory on Thursday, 16 February 2023, recouping the losses in the previous session, as investors chased for bottom fishing on following the broadly positive cues from Wall Street overnight.

Meanwhile, market risk sentiment also boosted up after official report showing the nation's unemployment rate unexpectedly rose to 3.7% in January. The rise in the jobless rate suggests the economy has begun to cool, triggering hopes the RBA might rethink the need for further rate hikes given its desire to bring the economy in for a soft landing.

At closing bell, the benchmark S&P/ASX200 index was up 58.10 points, or 0.79%, to 7,410.31. The broader All Ordinaries index added 61.64 points, or 0.82%, to 7,620.75.

Total 8 of 11 sectors ended up along with the S&P/ASX 200 Index. Consumer Discretionary was the best performing sector, gaining +2.74%, followed by information technology (up 2.71%), A-REIT (up 2.19%), telecommunication services (up 2.12%), and industrials (up 1.8%). Utilities was the worst performing sector, falling 1.43%.

The top performing stocks in S&P/ASX200 index were ORORA LIMITED and SONIC HEALTHCARE LIMITED, up 14.83% and 14.25% respectively. The bottom performing stocks in S&P/ASX200 index were AMP and NEW HOPE CORP, down 13.36% and 3.67% respectively.

Technology stocks advanced, tracking their overseas peers gains. ASX-listed shares of Block Inc and Xero soared 7.3% and 2.3%, respectively.

Among individual stocks, Sonic Healthcare shares surged 14.25% after the company said its base business revenue excluding the slowing COVID test segment rose 6% in the December half from the same time last year, while net profits were up by 50% on where they were before the pandemic.

Telstra's shares rose 1.9% after the nation's biggest telco said net profit climbed 25% to A$900 million for the six-month ended December 2022, thanks to growth in its mobile business and the acquisition of Digicel Pacific. Telstra raised its interim dividend to 8.5 cents a share, from 8 cents a year ago.

ECONOMIC NEWS: The Australian Bureau of Statistics said on Thursday that the unemployment rate in Australia came in at a seasonally adjusted 3.7% in January, unchanged from December. The Australian economy lost 11,500 jobs last month, badly missing expectations for an increase of 20,000 after shedding 14,600 in the previous month. Full-time employment was down 43,300 jobs after climbing 17,600 a month earlier. The participation rate was 66.5, which would have been unchanged.

Powered by Capital Market - Live News