The local market mimicked sentiment seen on Wall Street overnight, as investors shrugged off a hotter-than-expected inflation update, with the ASX 200 rising by 116.2 points or 1.75 per cent, to 6758.8. Eight sectors and 83 per cent of stocks in the ASX 200 gained ground. A rally in oil producers Woodside Petroleum (WDS), Beach Energy (BPT) and Santos (STO) helped the broader energy sector record its first gain this week, helped partly by a rebound in the oil price overnight. The Telecommunications and Health Care sectors also staged a recovery and snapped six
straight days of declines, after rising 1.55 per cent and 1.7 per cent, respectively. The Big 4 banks all climbed for the third straight day, and Miners also added 1.4 per cent.
Over the week, the ASX 200 edged 0.06 per cent lower. The best performers this week were Bank of Queensland (BOQ) and Qantas (QAN), which added 12.5 per cent and 8.4 per cent, respectively, after releasing better-than-anticipated trading updates. Insurance construction company Johns Lyng Group (JLG) was amongst this week’s worst performers after it announced that its CEO and Managing Director sold shares.
Genesis Energy (GNE) climbed 2.6 per cent after it upgraded its full-year earnings guidance by around 9.9 per cent. This comes after the New-Zealand based electricity retailer noted ‘favourable trading conditions’ in the first quarter of FY23, primarily driven by ‘higher hydro inflows and thermal generation flexibility’.
Harvey Norman (HVN) fell by 3.9 per cent – its most so far this month. The retailer’s shares today traded ex-dividend, with its 17.5- cents-per-share final dividend scheduled to be paid to eligible shareholders on November 14.
Companies expected to host their annual general meetings (AGM) next week include Endeavour Group (EDV), APA Group (APA), Origin Energy (ORG), Magellan Financial (MFG), Perpetual (PPT) and Insurance Australia Group (IAG).
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Despite an ease in tensions around the US inflation update, uncertainty in global markets still remains. Tonight the Bank of England is scheduled to officially end its emergency bond-buying program, which was announced to mitigate volatility in UK-fixed income markets. The volatility was partly driven by Prime Minister Liz Truss’ announcement to cut taxes.
Next week on the local economic front, the Reserve Bank’s Monetary Policy Meeting Minutes is scheduled to be handed down on Tuesday, with unemployment issued on Thursday. Also on Thursday, overseas, the UK is set to release an inflation update.
Today, 2.2bn shares were traded, worth $6.6bn. 792 stocks rose, 514 fell & 433 finished unchanged.
In the US, retail sales, consumer sentiment, export/import prices and business inventories data are all scheduled for release. Kansas City Fed President Esther George delivers a speech.
Originally published by Divik Nigam – (Author), CommSec
