Australia Market recoups ground on bargain hunting

The Australian share market has finished session higher on Tuesday, 30 November 2021, recouping some of the losses in the previous two sessions, as investors chased for bottom fishing on tracking the broadly positive cues from Wall Street overnight. Total 7 of 11 ASX sectors gained, with shares in telecom, realty, tech, and consumer staples sectors being notable gainers.

At closing bell, the benchmark S&P/ASX200 added 16.15 points, or 0.22%, to 7,255.97. The broader All Ordinaries index added 24.92 points, or 0.33%, to 7,587.42.

The top performing stocks in this index were COLLINS FOODS and CREDIT CORP GROUP, up 12.62% and 8.57% respectively. The bottom performing stocks in this index were ST BARBARA and PERSEUS MINING, down 4.26% and 4.09% respectively.

In company news, Orocobre shares climbed up 8% on positive trading update during its AGM today. The lithium producer upgraded its Mt Cattlin calendar year 2021 production guidance to 210-220kt after the mine produced record spodumene concentrate for the June and September quarters.

Credit Corp shares advanced 8.6% after announcing the acquisition of consumer credit group Radio Rentals from Thorn Group (TGA) for about A$60 million. TGA shares rose 10.9%.

AMP shares gained 3% after providing an update on its planned demerger of its AMP Capital Private Markets business which is due to go ahead in 1H22. The demerger is expected to deliver cost savings of A$300 million by FY22 and a further A$115 million of cost reduction initiatives from FY22 through to FY24.

ECONOMIC NEWS: Australia Building Permits Down 12.9% On Month In October- Australia total number of building permits was down a seasonally adjusted 12.9% on month in October, the Australian Bureau of Statistics said on Tuesday, standing at 15,911, following the 4.3% decline in September. Approvals for private sector houses rose 4.3% on month to 10,799, while permits for dwellings excluding houses plummeted 37.5% to 4,821. On a yearly basis, total permits sank 8.1%, permits for houses fell 3.7% and permits for dwellings excluding houses dropped 16.5%.

Meanwhile, the Australian Bureau of Statistics also said Australia posted a current account surplus of A$23.886 billion in the third quarter of 2021, up from A$20.5 billion in the three months prior.

The Reserve Bank of Australia said on Tuesday that private sector credit in Australia was up 0.5% on month in October, slowing from 0.6% in September. On a yearly basis, credit was up 5.7%, accelerating from 5.3% in the previous month.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.055 after rising to around 96.4 recently. The Australian dollar was at $0.7112, still struggling to recover after last week's drop from above $0.725.

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