Aussie shares are lifting on Tuesday, with the ASX 200 index up 0.3 per cent and remaining just above 6000pts thanks to gains from banks, energy and mining stocks. The market remains near four week lows however and has only improved twice in nine sessions.
Markets in the US and UK were closed overnight for holidays. Falls were modest across Europe with the exception of Italy, which slumped more than 2 per cent as it deals with a political crisis. The Italian president turned down the option of forming a coalition with far right parties and chose to appoint a former IMF official as interim PM.
Energy stocks are bouncing back despite continued weakness in oil prices and following outsized losses on Monday. Oil slipped by 2.1 per cent overnight on expectations that major oil producers could lift supplies.
Lithium producer Galaxy Resources (GXY) is up 10 per cent after agreeing to sell some of its undeveloped mining interests (tenements) in Argentina to South Korean conglomerate POSCO for ~A$370m. GXY has had a sluggish start to 2018 but intends to use the funds to develop its Sal De Vida (Salt of Life) operation in Argentina, one of the world’s largest undeveloped lithium deposits.
Retail Food Group (RFG) is up 7 per cent. The company, which is behind Gloria Jeans and Donut King in Australia has appointed a new CEO. Richard Hinson, the man hired in January to conduct a strategic review of the group steps into the role effective immediately.
APN Outdoor (APO) is up 4.7 per cent and continues to benefit from a guidance upgrade yesterday.
Telstra (TLS) remains under pressure after having its credit rating cut by S&P yesterday. The telco’s shares are down 11 per cent this month following a cut to its profit expectations.
Weekly consumer confidence has fallen for the first time in seven weeks according to a survey of around 1000 consumers. Sentiment slipped by a substantial 3.2 per cent last week. Retailers are mostly lower at lunch. Kogan.com (KGN), Harvey Norman (HVN) and JB Hi-Fi (JBH) are losing ground.
1.4bn shares have changed hands so far today worth $1.8bn. 517 stocks are up, 521 are down and 375 are flat.
Published by CommSec