For the first time in six months the Australian share market has finished higher for a fifth straight day, with the ASX 200 lifting by 33 pts or 0.44 per cent to 7490.4. While tomorrow’s December quarter update on Australian inflation (CPI) has the potential to snap the bourse’s winning streak, gains from our major miners did enough to offset declines from the banks.
The ASX 200 not only got to within 3pts of 7500pts, it also remains within 1.9 per cent of an all-time high and has only fallen twice in 15 trading days. Wednesday’s CPI however, could have ramifications for upcoming rate hikes, with a particularly hot read all but locking in additional rate hikes.
Buy-now-pay-later firm Zip Co (ZIP) delivered an update this morning, confirming that revenue improved across most of its markets and that it has become profitable in the United States. Its shares slumped by 15.6 per cent regardless, a day after surging by 22 per cent.
Evolution (EVN) outperformed most of its gold mining peers after delivering a quarterly update. Over the past three months, it produced more gold, sold at a higher price and importantly drove down costs by 27 per cent in the process. It also named a new Chief Financial Officer, who brings decades of mining experience into the role.
Iron ore miner Mineral Resources (MIN) rose by 5.3 per cent and hit a record high Tuesday.
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A major investment bank raised its expectations for lithium prices due to continued high demand and global shortages. Pilbara Minerals (PLS) rose by 5.2 per cent.
Myer (MYR) rose by 5.3 per cent after the department store owner said that sales hit near record levels recently, jumping 25 per cent between August and December 2022. Sales bounced back from Covid-related store closures a year earlier.
Kogan.com (KGN) confirmed it reduced inventory in warehouses by 39 per cent over the past six months. The online retailer was struggling with excess inventory, continued supply chain issues and lower than expected demand for its products.
The Australian dollar jumped back above US$0.70, hovering around a five month high against the greenback. Hopes of only a mild recession in the US and cooling inflation have helped.
3.2 bn shares were traded on Tuesday worth $6.6bn. 745 stocks rose, 638 fell and 420 finished unchanged.
Tonight, Microsoft will hand down its December quarter results. The tech giant flagged plans to cut 10,000 jobs last week in an effort to reduce costs as the US economy slows. A US update on manufacturing is also due tonight.
Originnally published by Steven Daghlian – Market Analyst (Author), CommSec