Australia Market gains after RBA rate hike

5 Jul 2022 , 05:31 PM

Australian share market finished session slight higher on Tuesday, 05 July 2022, extending the gains in the previous session, as the Reserve Bank of Australia (RBA) raised interest rates by 50 basis points to 1.35% today as predicted and offered a less hawkish view than what some investors had hoped for. The countrys central bank raised its cash rate for a third straight month to 1.35% and flagged more tightening ahead as it struggles to contain surging inflation. At closing bell, the benchmark S&P/ASX200 advanced 16.77 points, or 0.25%, to 6,629.33. The broader All Ordinaries index gained 21.15 points, or 0.31%, to 6,818.08. The top performing stocks in this index were LIFE360 INC. and REGIS RESOURCES, up 11.3% and 10.7% respectively. The bottom performing stocks in this index were UNIBAIL-RODAMCO-WESTFIELD and MIRVAC GROUP, down 3.9% and 2.9% respectively. Total 7 of 11 sectors ended higher along with the S&P/ASX 200 Index. Energy was the best performing sector, gaining +2.16%, followed by information technology (up 1.7%) healthcare (up 1.2%) and telecommunication services (up 0.6%), while realty was the worst performing sector, down 1.4%, followed by industrials (down 0.6%). Shares of energy sector advanced amid concerns around tight supply of the commodity shadowed fears of a looming global recession. Sector majors Woodside Energy Group and ol advanced 3.8% and 1.1%, respectively. Gold stocks were up on tracking rise in gold prices. Sector heavyweights Northern Star Resources and Newcrest Mining climbed 2.4% and 1.35%, respectively. ECONOMIC NEWS: The Reserve Bank of Australia lifted its cash rate by 50 basis points to 1.35%, marking 125 basis points of hikes since May and the fastest series of moves since 1994. The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead, said RBA Governor Philip Lowe in a statement. CURRENCY NEWS: The Australian dollar fell after the RBA decision was announced, and last traded at $0.6854. Powered by Capital Market – Live News