Australia Market rises on bargain hunting

Australia stock market finished session higher on Wednesday, 08 February 2023, as investors chased for bottom fishing following selloff in previous two sessions, thanks to positive lead from Wall Street overnight, with shares in financials and materials leading market rally.

At closing bell, the benchmark S&P/ASX200 index was up 25.93 points, or 0.35%, to 7,530.07. The broader All Ordinaries index advanced 27.44 points, or 0.36%, to 7,740.49.

Total 6 of 11 sectors ended higher along with the S&P/ASX 200 Index. Financial was the best performing sector, gaining 0.9%, followed by materials (up 0.76%). Consumer staples was worst performing sector, erasing 0.61%, followed by healthcare (down 0.6%) sector.

The top performing stocks in S&P/ASX200 index were BORAL. and IMUGENE, up 12.78% and 7.69% respectively. The bottom performing stocks in S&P/ASX200 index were ELDERS and HEALIUS, down 5.86% and 5.37% respectively.

Financial stocks advanced, with Suncorp Group (up 4.6%) leading the gains, as it looked to lift its dividend by more than 40%. The dividend bonanza comes as the bank reported sharply higher insurance profits, driven by strong growth in premiums and higher investment returns. Macquarie Group added 2.6% on the back of a 0.25 percentage point increase in the interest rate by the Reserve Bank on Tuesday.

Materials were also higher. Fortescue Metals added 2% after it signed a convention for an iron ore project with the government of Gabon as the broader materials sector gained 0.5%.

Consumer staples and healthcare sectors both were down with product packaging company Amcor and Sonic Healthcare shedding 3.3% and 3% each.

CURRENCY NEWS: The Australian dollar was stood at 0.6986 against greenback on Wednesday, up by 0.42% from previous trading day closure at 0.6958 after trading in the range of 0.6948-0.6996.

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