Australia’s stock market soared for the second straight day, boosted by movements in the United States, and materials and tech stocks drove the rise.
The benchmark S & P / ASX200 index closed at 7320.1, up 0.87%, while the All Ordinaries Index rose 0.88% to 7617.3.
CommSec analyst Stephen Dagrian said the week ended in a positive territory, meaning that the four-week streak had come to an end.
“What seems to have helped a bit is that the US Senate has approved a bill to raise the US debt cap,” said Daglian.
“That means there is no US government default for the foreseeable future.
“But it doesn’t solve anything in the long run, as it essentially buys parliamentary time. This raises the debt cap until early December, so it only takes another two months.
“Unfortunately, we’re almost certain to hear more about this in the coming weeks.”
OMG CEO Ivan Tchourilov said it was a tough week for the local stock exchange.
“Looking at the 200 index, we’ve seen a two-day rise and a two-day fall,” said Tchourilov.
“Mainly the US debt cap debate and headwinds from inflation concerns are putting downward pressure on the valuation.
“In the meantime, retail-by-the-dip investors are still emerging in decent numbers, pushing up market prices.”
He said this week his company found great value in the market, doubling the value of net sales compared to purchases.
For OMG, kicking the US debt cap debate wasn’t enough to upset investors and buy back.
“With a mix of periodic and aperiodic securities, retail was the most purchased sector through the open market this week,” he said.
According to Tchourilov, preferred strains included Wesfarmers and Adairs, owners of Webjet, Kogan, and Bunnings.
Webjet rose 0.63% to $ 6.37, Kogan rose 2.88% to $ 10.02, Wesfarmers rose 1.34% to $ 55.06, and Adairs rose 1.32% to $ 3.84.
Furniture retailer Nick Scali has been doing well after the recent announcement of the purchase of Plush-Think Sofas, which significantly expands its store network, at $ 13.45, up 1.2%.
In the mining sector, Rio Tinto rose 4% to $ 100.40, BHP rose 3% to $ 37.74, and Fortescue closed at $ 26.30 after releasing its June quarter production report, steadily since July 29. After falling to $ 14.25, it rose 2.44% to $ 14.25.
Gold explorer Thiet Minerals surged from 8.86 percent to 43 cents earlier this week, providing details on the expected production and revenue from the Abjar project in Côte d’Ivoire, West Africa.
Among high-tech stocks, afterpay, the market leader after paying now, rose 1.96% to $ 122.99, smaller rival Zip rose 1.9% to $ 6.98, and accounting software provider Zero rose 1.36%. It was 139.28 dollars.
Internet security firm Tesserent rose 6.82 percent to 23.5 cents the day after announcing the completion of its acquisition of Loop Secure.
However, EML Payments fell 14.6% to $ 3.16 after announcing the potential significant impact of the Central Bank of Ireland’s crackdown on regulations.
“CBI is considering PFS Card Services, a subsidiary of EML, which accounts for the majority of its business in Europe,” explained Tchourilov.
“EML’s share price fell by more than 45% overnight when regulatory concerns were first announced in May this year.
“This announcement affects about 27% of EML’s global revenue and does not affect our operations in Australia and North America, but it is still a solid chunk of revenue and damaging their reputation. “
Ord Minnett has reduced the valuation of EML from $ 4.38 to $ 4.02.
In economic news, the Reserve Bank of Australia released a biannual financial stability review, warning that there is a risk of excessive borrowing amid low interest rates and rising house prices.
The central bank said most borrowers’ incomes had recovered from the massive dip caused by the pandemic, but incomes remained low in some of the hit industries.
“The Reserve Bank is closely watching home credit growth (loan balances) and is focusing on 10% annual growth, which is the credit-to-income ratio,” said Craig James, chief economist at Comsec. It will lead to a rise. “
“But banks also say,” Mortgage arrears are also very low, about 1 percent of all banks’ mortgages. “
“The Reserve Bank is confident that the financial system can withstand risks, especially those associated with Delta.”
The RBA also showed that business bankruptcies remained lower than before the pandemic and that Chinese authorities are closely monitoring how they dealt with the Evergrande debt crisis, James said.
ANZ rose 0.54 percent to $ 27.96, Commonwealth Bank rose 1 percent to $ 104.45, National Australia Bank rose 1.39 percent to $ 28.38, and Westpack rose 0.19 percent to $ 25.96.
The Australian dollar earned US $ 73.1, UK Pence 53.64 and Eurocent 63.18 in the afternoon trading.
Australia’s stock market ends the week with positive territories, miners and tech stocks among the winners of the day
Source link Australia’s stock market ends the week with positive territories, miners and tech stocks among the winners of the day