Australia: Market rises 1.1% ahead of RBA meet

4 Jul 2022 , 04:22 PM

Australian share market finished session sharp higher on Monday, 04 July 2022, as positive lead from Wall Street last Friday helped the Aussie market snap a three-day losing streak. At closing bell, the benchmark S&P/ASX200 advanced 72.66 points, or 1.11%, to 6,612.57. The broader All Ordinaries index added 76.50 points, or 1.14%, to 6,796.93. The top performing stocks in this index were IMUGENE and INGENIA COMMUNITIES GROUP, up 12.82% and 5.32% respectively. The bottom performing stocks in this index were MAGELLAN FINANCE and POINTSBET HOLDINGS, down 9.9% and 6.25% respectively. All 11 sectors ended higher along with the S&P/ASX 200 Index. Energy was the best performing sector, gaining +2.62%, followed by realty (up 2.2%), consumer discretionary (up 1.8%), and healthcare (up 1.8%). Shares of energy sector led market rally, with Santos advancing 3.3%, followed by Woodside Energy Group, which closed 2.7% higher. Miners closed higher as Rio Tinto and Fortescue Metals climbed 0.4% each. Shares of interest rate sensitive financials advanced, ahead of a possible half percentage-point rate hike by the Reserve Bank of Australia (RBA) again when they meet on Tuesday to tame surging inflation, which hit a 20-year peak in the first quarter of this year. Robust retail sales and very strong job vacancies data last week further strengthen the case for the central bank to move quickly away from emergency settings. Commonwealth Bank of Australia, National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking Corp gained between 0.8% and 1.3%. Magellan Financial gave up 9.9% after reports that its long-serving head of sales and distribution, Frank Casarotti, would be departing the company in December 2023. In economic news, the Melbourne Institute monthly headline inflation gauge rose by 0.3% in June – after rising 1.1% in May – to be up 4.7% over the year. The value of new home loans rose by 1.7% in May. Loans for renovations (alterations & additions) rose by 11.6% in May to record highs. ANZ job ads rose by 1.4% in June to a 14-year high of 243,523 positions. Job ads are up 18.4% on the year. CURRENCY NEWS: The Australian dollar was at $0.6854 after recovering from below $0.679 recently.Powered by Capital Market – Live News