Australia Market rebounds on bargain hunting

The Australian share market finished the holiday-shortened week on a positive note on Friday, 28 January 2022, snapping a 4-day-losing streak, as investors chased for recently battered stocks after the recent Fed-induced sell-off.

However, market gains were limited amid lingering concerns about the domestic Covid-19 cases, though on a decline. New South Wales reported 13,333 new cases and 35 deaths on Thursday and Victoria also reported 12,755 new cases and 39 deaths. Queensland recorded 9,974 new cases and 18 deaths, ACT reported 734 new cases and Tasmania reported 584 new cases.

At closing bell, the benchmark S&P/ASX200 added 149.86 points, or 2.19%, to 6,988.14. The broader All Ordinaries index grew 151.81 points, or 2.13%, to 7,266.35. For the week, the S&P/ASX200 index lost 2.6%.

 

All 11 sectors ended higher along with the S&P/ASX 200 Index, with Consumer Discretionary, consumer staples and Industrials sectors were top performers, finishing up 3.27%, 3.26%, and 2.6% respectively.

The top performing stocks in this index were IMUGENE and POLYNOVO, up 10.53% and 9.17% respectively. The bottom performing stocks in this index were RAMELIUS RESOURCES and NEWVREST MINING, down 8.04% and 6.36% respectively.

Among individual stocks, ResMed finished 0.5% lower after the company posted 12% increase in revenue, a 1.4 percentage-point contraction in their gross margin (now 57.6%) and a 12% increase in operating income. The healthcare company attributes its growth to strong demand for its sleep apnea treatments.

ECONOMIC NEWS: Australia Producer Prices Up 1.3% On Quarter In Q4 - Australia final demand producer prices were up 1.3 percent on quarter in the fourth quarter of 2021, the Australian Bureau of Statistics said on Friday, accelerating from 1.1 percent in the previous three months. On a yearly basis, producer prices were up 3.7 percent, up from 2.9 percent in the three months prior.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, last traded at 97.333, up from 97.225 earlier. Meanwhile, the Japanese yen traded at 115.66 per dollar, while the Australian dollar changed hands at $0.7014, down slightly from $0.7031 earlier.

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