Australia Market gains on commodity boosts

5 Dec 2022 , 02:59 PM

Australia stock market finished session modestly higher on Monday, 05 December 2022, led by materials and energy stocks, as traders welcomed more easing of strict COVID containment measures in China that have hammered the worlds number-two economy. Market welcomed more easing of strict COVID containment measures in China that have hammered the worlds number-two economy. The move to reopening helped fuel market optimism about the tailwinds of a likely acceleration in growth in 2023 for China-sensitive assets. However, market gains capped as stronger-than-expected US jobs report for November dented hopes that the Federal Reserve will take a softer approach to hiking interest rates in its battle against inflation. At closing bell, the benchmark S&P/ASX200 index was up 24.14 points, or 0.33%, to 7,325.60. The broader All Ordinaries index added 24.36 points, or 0.32%, to 7,527.83. Total 7 of 11 sectors were lower along with the S&P/ASX 200 Index. A-REIT issue underperformed, losing 2.66%, followed by energy (down 2.45%), financials (down 1.02%), consumer discretionary (down 1.02%), and industrials (down 1%). Health Care was the best performing sector, gaining 1.09%. The top performing stocks in S&P/ASX200 index were FORTESCUE METALS GROUP and BEACH ENERGY, up 6.9% and 5.3% respectively. The bottom performing stocks in S&P/ASX200 index were DENGREY MINING and PILBARA MINERALS, down 6.4% and 5.1% respectively. Shares of materials and resources companies advanced on hopes of increased demand for commodities in Southeast Asias biggest trading partner. Iron ore giants Rio Tinto, BHP Group and Fortescue Metals were up between 2.7% and 8%. Energy stocks were up as oil prices climbed overnight. Sector majors Woodside Energy and Santos Ltd added 2% and 2.7%, respectively. Financials declined slightly, with all of the Big Four banks seeing a decline. National Australia Bank and Australia and New Zealand Banking Group lost 0.4% and 0.3%, respectively. Among individual mover, IGO shares declined after battery minerals producer suspended production at its Nova nickel operation in Western Australia for around four weeks after a fire damaged its power station over the weekend. CURRENCY NEWS: The Australian dollar was up 0.28% at $0.6809 against greenback after trading in range 06765-6851 on Monday.Powered by Capital Market – Live News