The local sharemarket rose – albeit on light trading – for the fourth straight day, after the ASX 200 finished with a gain of 0.24 per cent or 17.4 points to 7259.5. 9 sectors (of 11) and 56 per cent of stocks in the ASX 200 gained ground. The Big 4 banks improved on average by 0.5 per cent, lifting the broader Financials sector 0.8 per cent higher. Lithium stocks Allkem (AKE), Pilbara Minerals (PLS), Liontown Resources (LTR), Core Lithium (CXO) and Lake Resources (LKE) were amongst some of the worst performers today.
A dampened demand outlook for commodities, following China recording its largest number of Covid cases in three
years, weighed on the Energy and Mining sectors today. Major miners Fortescue Metals (FMG), Rio Tinto (RIO)
and BHP Group (BHP) all finished in negative territory, driving the broader Materials sector 1.1 per cent lower. Energy stocks also fell, with the sector recording a 0.3 per cent loss.
Over the week, the ASX 200 added 1.5 per cent and recouped some losses it posted the week prior. All sectors
improved, with Utility rising most. AGL Energy (AGL) and Origin Energy (ORG) both increased by at least 6 per cent. The Big 4 banks all posted gains, helping the broader Financials sector add 2 per cent. Virgin Money (VUK)
surged 24 per cent higher and was the best performer this week, after it released better than expected financial results and announced a buy-back. Wisetech Global (WTC) on the other hand, shed 6.1 per cent despite reaffirming its FY23 guidance.
Clothing retailer City Chic Collective (CCX) fell just under 30 per cent to its worst level since the onset of Covid in
March 2020. The tumble comes after it released a trading update in the Annual General Meeting it held earlier today. CCX announced that its revenue is down 2 per cent year-todate, and noted volatility in its global demand. It says that the competitive landscape in the Northern Hemisphere has ‘intensified’, with ‘promotional activities’ impacting gross margins. In the first 20 weeks of FY23, CCX’s USA revenue has decreased by 12 per cent.
Today, 2.9bn shares were traded, worth $6bn. 710 stocks rose, 636 fell & 427 finished unchanged.
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Looking ahead tonight, there are no major economic data releases scheduled in the US.
Originally published by Divik Nigam – (Author), CommSec
