Australia Market surges 1.3%

20 Sep 2022 , 04:54 PM

Australia stock market finished session sharply higher on Tuesday, 20 September 2022, after the minutes of the Reserve Bank of Australias (RBA) September meeting revealed that the central bank saw a case for slowing the pace of hikes as policy settings approached more normal levels. However, gains were limited as investors watch-out for outcome of the Federal Reserves monetary policy announcement on Wednesday. Investors have priced in at least another 75 basis point increase in rates at the end of a 2-day Federal Open Market Committees meeting on Wednesday. At closing bell, the benchmark S&P/ASX200 index was up 86.51 points, or 1.29%, to 6,806.43. The broader All Ordinaries index added 81.42 points, or 1.17%, to 7,030.05. Total 9 of 11 sectors were lower along with the S&P/ASX 200 Index. Utilities sector was the worst performer, falling 1.4%, followed by information technology (down 1.25%) and energy (down 1.14%) sectors. A-REIT was the best performing sector, gaining 0.92% The top performing stocks in S&P/ASX200 index were NEW HOPE CORP and BRICKWORKS, up 8.8% and 5.7% respectively. The bottom performing stocks in S&P/ASX200 index were ABACUS PRPERTIES and TELIX PHARMACEUTICAL, down 2.2% and 2.1% respectively. Energy stocks were higher, with gains led by New Hope Corp, up 8.8%, after the coal miner reported a massive jump in its annual profit on soaring thermal coal prices. Materials were also higher, even as Chinas strict zero-Covid policy and ailing property sector raised demand concerns. Rio Tinto, BHP Group advanced 2.5% and 3.6%, respectively, while Fortescue fell 0.9%. In company news, Shares of the retail wealth manager AMP declined 2% after the Australian federal court slapped with a A$14.5 million fine related to the previous charging of fees from corporate pension accounts without providing corresponding services. Shares of AML3D surged 19% after the additive metal technology company expanded its existing contract with New York Stock Exchange-listed aircraft manufacturer Boeing. ECONOMIC NEWS: The Reserve Bank of Australia (RBA)s board members saw the case for a slower pace of increase in interest rates as becoming stronger, according to minutes from its Sept. 6 meeting, where it raised its interest rate by 50 basis points to 2.25%. The Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path given the uncertainties surrounding the outlook for inflation and growth, it said in the minutes released on Tuesday. It added medium-term inflation expectations remained well anchored. Future interest rate increases will be guided by data and the outlook for inflation and labor markets, the RBA said.Powered by Capital Market – Live News