Aussie shares have bounced back from a cautious start to the session, with the ASX 200 lifting by 0.46 per cent following softer than expected inflation data. This snaps a two-day losing streak and keeps the market on track to extend its winning streak to seven straight months.
Significant declines in the gold subsector are being offset by gains across most other areas of the market. Financials and property stocks are among the main contributors to the gains at lunch.
Coles (COL) handed down a quarterly update, with its latest growth numbers suggesting the unusual sales growth recorded during the pandemic has started to normalise. Sales at its supermarkets between January and March fell 6.1 per cent on the same time last year, while liquor sales rose 2.6 per cent on 12 months earlier. When compared to 2-years earlier however, supermarket sales grew 6.88 per cent.
`JB Hi-Fi (JBH) shares are down 3.5 per cent to $45.80. Longtime CEO Richard Murray will leave the company in August to take up the chief executive role at Premier Investments (PMV). Mr Murray has been with JBH for 18 years. JBH shares were trading at around $2 at the time. JBH 3Q sales in Australia grew by 10.4 per cent, by 16 per cent in New Zealand and 5.8 per cent at The Good Guys.
Ansell (ANN) is up close to 3 per cent and said it is continuing to experience strong demand for its Personal Protective Equipment. ANN expects 2H sales growth to be better than the 24.5 per cent lift in 1H.
Airtasker (ART) is up 8 per cent after upgrading its FY21 guidance this morning. Property group Mirvac (MGR) is up 4.5 per cent and raised its FY21 earnings and distribution forecasts. MGR said it will return JobKeeper payments made in FY21.
CPI (consumer inflation) rose by a weaker than expected 0.6 per cent in the March quarter and just 1.1 per cent on the year. This is the main measure of inflation used by policymakers. The softer result helped push the Australian sharemarket higher at 11:30am AEST and the Australian dollar lower. The RBA has recently continued to reassure markets it intends to keep rates low until 2024 ‘at the earliest’. The most significant price rise in the March quarter was petrol (up 8.7 per cent), while the largest decline was furniture (down 3 per cent).
3.4bn shares have changed hands so far worth $2.8bn, with 654 stocks up, 596 down and 402 unchanged.
Published by CommSec