Australia shares close at highest in over a year, extend gains for 4th session

Australia shares close at highest in over a year, extend gains for 4th session

Australian shares on Wednesday closed at their highest in over a year, extending gains for the fourth straight session, helped by the country’s energy and gold sectors.

The S&P/ASX 200 index rose 0.61 per cent to 6,928.0 at the close of trade, its highest close since Feb. 24 last year.

“What’s really at play right now is to get a handle on which direction we’re going with rates and expectations for inflation,” said Brad Smoling, managing director at Smoling Stockbroking.

On Tuesday, the country’s central bank left lending rates unchanged at an all time-low, and promised to remain accommodative for as long as it took to push inflation within its 2 per cent to 3 per cent target range.

“The Australian exchange is really sort of spinning its wheels, there’s no direction to take a lead from at this stage,” Smoling said.

Gold stocks extended gains for a third session and closed up 2.3 per cent, as bullion prices rose overnight, though prices dipped on Wednesday as strong U.S. data sparked economic recovery hopes.

Index heavyweight Newcrest Mining Ltd rose 1.1 per cent and ended higher for a third session.

Energy stocks closed up 1.4 per cent, tracking an uptick in oil prices on the prospects of stronger global economic growth amid increased Covid-19 vaccinations.

Woodside Petroleum Ltd and Santos Ltd rose 1.2 per cent and 1.9 per cent, respectively.

Tech stocks continued their winning streak for a fourth session, with Afterpay Ltd adding 1.9 per cent.

Travel stocks extended gains following the announcement of quarantine-free “travel bubble” between Australia and New Zealand on Tuesday. Qantas Airways Ltd climbed 2.6 per cent, while Flight Centre Travel Group Ltd added 1.2 per cent.

New Zealand’s benchmark S&P/NZX 50 index rose 0.7 per cent to finish the session at 12,487.59.

Source link


Please enter your comment!
Please enter your name here