Australia Market rebounds 1%

8 Feb 2022 , 05:03 PM

The Australian share market finished session higher on Tuesday, 08 February 2022, as risk sentiments supported by surging iron ore prices and positive earnings from Macquarie Group.

At closing bell, the benchmark S&P/ASX200 added 75.84 points, or 1.07%, to 7,186.69. The broader All Ordinaries index rose 74.76 points, or 1.01%, to 7,488.96.

The Financials sector surged 1.4% higher and the Materials sector finished up for the fifth straight day, adding 2.2%. The Information Tech Sector performed the worst today, shedding 1.6%.

Shares of miners climbed up on the back of surging iron ore prices. Sector heavyweights BHP Group, Rio Tinto and Fortescue Metals Group gained between 2.2% and 3.7%.

Macquarie Group shares rose on record quarterly performance, backed by strong commodity markets and asset sales in infrastructure. Market-facing businesses saw higher principal income and strong investment realisations drive an annual increase in combined net profit. However, annuity-style businesses faced timing issues and are expected to post a quarterly slip in net profit. MQG expects market-facing businesses to perform strongly in 2H22, and annuity-style businesses to face competitive, provisioning and other expense pressures.

Suncorp Group (SUN) surged 5.5% to $12.03 after it saw its gross written premiums increase by 7.5%. The Brisbane-based insurer also posted lower investment market returns, a 20.8% fall in profits, a 29% decline in cash earnings and a 3 cent cut in its dividend to 23 cents per share. SUN has provisioned for higher natural hazard allowance in FY22, on the back of natural hazard claims costs exceeding its expectations by more than $205m.

CURRENCY NEWS: The Australian dollar was at $0.712 after yesterdays climb from below $0.708.

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