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Australia Market ekes out gains

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Capital Market
Last Updated : Aug 17 2022 | 6:04 PM IST
Australia share market finished session slightly higher on Wednesday, 17 August 2022, on the back of strength in shares of consumer staples, consumer discretionary, realty, industrials, and materials stocks which helped to offset losses in materials and healthcare stocks.

At closing bell, the benchmark S&P/ASX200 index was up 22.30 points, or 0.31%, to 7,127.68. The broader All Ordinaries index added 19.26 points, or 0.26%, to 7,381.13.

The top performing stocks in S&P/ASX200 index were CHALLENGER and BRAMBLES, up 5.6% and 5.1% respectively. The bottom performing stocks in S&P/ASX200 index were POINTSBET and NOVONIX, down 7.7% and 6.5% respectively.

Market risk sentiments were muted on concerns of another half-point rate hike in September after Australian wage growth rose at the fastest pace in almost eight years last quarter as red-hot demand for labour drove unemployment to generational lows.

The central bank has already raised interest rates by 175 basis points to 1.85% since May, and flagged more hikes ahead. Markets are wagering rates could rise as far as 3.5% by April next year given inflation has shot to a 21-year high of 6.1% and is expected to top 7% in coming months.

Shares of materials and resources climbed up on strong base metal prices. Sector majors BHP Group and Rio Tinto, both rose 0.8%.

Healthcare stocks dipped, dragged by a 1.3% fall in heavyweight CSL after the Australian biotech giant posted a drop in annual profit due to declining donations of blood plasma, the key ingredient of its products, and flagged higher staffing costs as collection volumes returned to pre-pandemic levels.

Energy stocks were also lower. Santos led decline with loss of 2.4% despite a surprise announcement to move ahead with developing a US$2.6 billion Alaskan oil project, and posting a record first-half profit.

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ECONOMIC NEWS: The Australian Bureau of Statistics wage data released on Wednesday showed that wage price index (WPI) rose 0.7% in the June quarter. The annual rate picked up to 2.6%, from 2.4%. The private sector saw growth of 2.7%, while the public payroll trailed at 2.4%. The jobless rate has fallen steeply to the lowest in 48 years at 3.5%, while record vacancies point to still-strong demand for workers.

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First Published: Aug 17 2022 | 5:28 PM IST

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