Australia Market ends marginally up

The Australian share market finished session marginally higher on Monday, 28 March 2022, registering winning streak for fifth days in row, as gains in financial and materials shares offset weakness in gold miners and technology stocks.

Market sentiments were subdued as investors closely watched developments in Ukraine amid the escalation of the ongoing Russia-Ukraine crisis and the increasing sanctions on Russia. Also dampening sentiments were hawkish policy stance by the Federal Reserve and concerns over the Chinese economy after Shanghai came under a lockdown due to rising COVID-19 infections.

At closing bell, the benchmark S&P/ASX200 advanced by 6.17 points, or 0.08%, to 7,412.42. The broader All Ordinaries index fell 0.61 point, or 0.01%, to 7,689.26.

 

Shares of materials sector climbed on firmer commodity prices. Sector majors Rio Tinto and Fortescue Metals Group climbed 1.4% and 0.8%, respectively, while BHP Global added 2.3

Financials rose, with the "Big Four" banks being major gainers. Westpac Banking Corp rose 1.2%, while National Australia Bank added 1%.

Gold stocks ended lower on profit booking as bullion prices fell after the U.S. dollar and Treasury yields firmed. Newcrest Mining, Australia's largest gold miner, shed 0.2%, while Evolution Mining lost more than 2%.

In company news, Shares of Carnarvon Energy (CVN) have entered into a trading halt after the company announced a capital raise. CVN aims to raise approximately A$70 million (30-cents-per-share) which, with its existing cash balance (~$77.3 million), will be used to bring the Dorado liquids development to a Final Investment Decision in 2022. CEO Adrian Cook said that the funds will also be used to test the significant amount of tie-in potential close to the Dorado development.

CURRENCY NEWS: The Australian dollar was at $0.753, having risen from below $0.74 last week.

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