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Australia Market bounces on bottom fishing

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Headline indices of the inclined on Thursday, 12 July 2018, as investors chased for value buying, a day after a bruising selloff amid fears of an escalation in the U. S.-trade war after the said it would impose tariffs on an extra 200 billion worth of Chinese imports and said it would retaliate. Total 8 out of 10 issues inclined, with shares in financial, realty, healthcare, tech, and consumer discretionary issues being notable gainers. Around afternoon trade, the benchmark 200 Index rebounded 53 points or 0.85% to 6,268.60. The broader Index rose by 48.39 points or 0.77% to 6,348.60.

Shares of financials were the key contributor to gains for the local bourse with all major lenders in the green around the 1% mark as Australia's watchdog on Wednesday said its intense crackdown on risky mortgage lending was largely complete, as higher lending rates were also helping cool the country's housing market.

Shares of care companies also advanced, propping up the benchmark.

CSL, the country's fifth largest firm by market value, and hearing aid maker strengthened in the range of 1.5% - 2.5%..

However, a slump in and commodities prices drove down and materials stock, capping the benchmark's rise. Global benchmark Brent had its biggest one-day drop in two years on Wednesday, putting pressure on A plunge in on Wednesday, lead by a 3% drop in copper pushed materials stock, especially miners lower. Among stocks, Woodside Petroleum, Search, and were sliding in the range of 2% - 4%. Among miners, Billiton (BHP), (RIO), and (S32) fell in the range of 0.5% - 1%.

CURRENCY NEWS: The Commodity-linked Australian dollar was little changed against greenback on Thursday after suffering deep losses on Wednesday. The Aussie, considered a liquid proxy for China-related trades, traded little changed at $0.7366 after dropping 1.2% overnight.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 08:50 IST
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