Australia Market climbs on miners, energy boosts

Australia stock market finished at highest levels in over a month on Thursday, 27 October 2022, as gains in commodity prices on the back of a weaker dollar helped lift miners and energy stocks, although weak performances among financials limited gains.

At closing bell, the benchmark S&P/ASX200 index was up 34.26 points, or 0.5%, to 6,845.13. The broader All Ordinaries index added 37.18 points, or 0.53%, to 7,042.32.

The top performing stocks in S&P/ASX200 index were RAMELIUS RESOURCES and SANDFIRE RESOURCES, up 8.4% and 7% respectively. The bottom performing stocks in S&P/ASX200 index were ILUKA RESOURCES and CORE LITHOUM, down 6.3% and 5.15% respectively.

 

Shares of materials and resources climbed up as a slew of positive production reports from miners tempered concerns about retreating iron ore prices, which slumped on a gloomy demand outlook for steel-making commodities in top consumer China. BHP Group, Rio Tinto and Fortescue Metals advanced between 1% and 2.7%. Lynas Rare Earths shares soared 5.6 percent after the rare-earths miner reported a 35 percent jump in first-quarter revenue on strong rare earths demand.

Australian gold stocks surged as bullion held its ground at a two-week high. Newcrest Mining advanced 2.9%.

Energy stocks climbed on the back of surging oil prices, with Woodside Energy and Santos rising 2.8% and 2.4%, respectively.

Financials shares dropped a day after data showed that Australia's inflation raced to a 32-year high last quarter, putting pressure on the central bank to return to more aggressive rate hikes. Shares of three of the four big banks fell between 0.5% and 3.3%, but Commonwealth Bank of Australia advanced 0.4%

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