Australia: Market recoups ground on bargain buying

The Australian share market finished session slight higher on Friday, 17 December 2021, recouping some of the recent losses, as bargain buying resumed after Reserve Bank of Australia governor Philip Lowe statement that the central bank would keep interest rates at a record low next year.

However, market gains were limited amid concerns about the rising coronavirus cases. New South Wales reported a new record of 2,213 new cases and one death on Thursday, with a total of 185 Omicron cases. Victoria also reported 1,510 new cases and seven deaths, with more than 13 total Omicron cases.

At closing bell, the benchmark S&P/ASX200 was up 8.31 points, or 0.11%, to 7,303.97. The broader All Ordinaries index rose 7.77 points, or 0.1%, to 7,626.23.

The top performing stocks in this index were NORTHERN STAR RESOURCES and IRESS, up 5.59% and 5.55% respectively. The bottom performing stocks in this index were DOMAIN HOLDINGS AUSTRALIA and AFTERPAY, down 8.5% and 7.6% respectively.

Total 6 of 11 sectors ended higher along with the S&P/ASX 200 Index. Material was the best performing sector, gaining +1.2%, while information technology was the worst performing sector, falling 3.88%.

EML Payments (EML) closed down 6.8% at A$3.04 after becoming aware of media speculation around a class action reportedly commenced by Shine Lawyers. The class action is said to focus on whether EML's disclosure of information relating to their correspondence with the Central Bank of Ireland, was done in a timely manner.

Shares of toll road operator Transurban Group (TCL) closed down 0.1% at A$13.53 after announcing a traffic update, and informing investors of increased costs associated with the Westgate Tunnel Project in Melbourne. TCL said it will incur an additional A$2bn in costs to ensure the efficient and timely completion of the project. The cost pressures reflected higher insurance costs, and the legal expense associated with securing a resolution with regards to the disposal of contaminated soil.

CURRENCY NEWS: The Australian dollar changed hands at $0.7164, down some 0.25%.

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