Australia Market extends gain; Mining stocks lead

9 Nov 2022 , 01:47 PM

Australia stock market finished higher for fourth straight session on Wednesday, 09 November 2022, on the back of strength in materials and resources and property trusts partially offset by weakness in telecommunication and consumer staples counters. At closing bell, the benchmark S&P/ASX200 index was up 40.42 points, or 0.58%, to 6,999.30. The broader All Ordinaries index added 37.34 points, or 0.52%, to 7,187.41. Total 7 of 11 sectors ended down, with telecommunication services (down 1.4% was worst performer, while material (up 2.5%) sector was top gainer. The top performing stocks in S&P/ASX200 index were ST BARBARA and REGIS RESOURCES, up 13% and 12.7% respectively. The bottom performing stocks in S&P/ASX200 index were NEWS CORP and WHITEHAVEN Co, down 11.1% and 8.5% respectively. Investors awaited the results of the U.S. midterm elections, which could affect future levels of government spending and regulation in the second half of President Joe Bidens term. Results of the U.S. midterm elections will decide whether the Democrats lose or retain congressional control halfway through President Joe Bidens term, with investors expecting Republican gains. Republicans are widely favoured to pick up the five seats they need to control the House, but control of the Senate could come down to tight races in several states. A split Congress would diminish the outlook for fiscal support measures, leading to investors to expect the Fed to sooner become less aggressive in raising interest rates. Traders also continued to look ahead to Thursdays report on consumer price inflation. The inflation data would give clues about how much the U.S. Federal Reserves rapid interest rate hikes are helping cool down the economy. Shares of materials and resources advanced as iron ore prices climbed to their highest in two weeks on Tuesday on hopes that China would ease its Covid-19 restrictions, despite worries about a surge in new infections in some Chinese cities and weak steel demand. Shares of Rio Tinto, BHP Group and Fortescue Metals advanced between 2.1% and 3.1%. Energy stocks were down on lower oil prices and after coal producer Whitehaven Coal flagged lower production for this fiscal due to floods in New South Wales state, which cut access to its open-cut mines. Shares of Whitehaven Coal were down 8.4%. ECONOMIC NEWS: Total number of building permits issued in Australia was down a seasonally adjusted 5.8% on month to 16,455 in September, according to the Australian Bureau of Statistics data released on Wednesday. On a yearly basis, approvals were down 13% after slipping 9.4% in August. The seasonally adjusted estimate for the value of total building approved fell 6.9% in September, following a 19.5% increase in August. Powered by Capital Market – Live News