Australia: Gold, banking stocks drive shares up as Omicron worries ease

[BENGALURU] Gold and financial stocks helped Australian shares close higher on Thursday (Dec 23), as investor sentiment improved after 2 research studies showed Omicron was less lethal compared with the Delta coronavirus variant.

The S&P/ASX 200 index rose 0.3 per cent to 7,387.6 points, closing in the green for a third consecutive day. The benchmark had gained 0.1 per cent on Wednesday (Dec 22).

While Australia reported more than 8,200 new cases, 2 separate studies in South Africa and London suggested the risk of hospitalisation from the Omicron variant was less severe compared with the Delta variant.

The heavyweight financial index rose 0.6 per cent, with the country's "Big Four" banks ending up between 0.3 per cent and 0.6 per cent.

Gold miners rose 1.3 per cent as the yellow metal was poised for a second straight weekly gain. Dacian Gold and Tietto Minerals jumped 8.6 per cent and 7.2 per cent, respectively.

Miners, which comprise a third of the benchmark, ended 0.3 per cent higher as metal prices strengthened on supply concerns.

However, iron ore majors Rio Tinto and BHP Group shed 0.1 per cent and 0.3 per cent, respectively.

Health stocks, up 0.5 per cent, advanced for a fourth straight session, with diagnostics firm Sonic Healthcare among top gainers.

Henry Jennings, senior analyst at Marcustoday Financial Newsletter said that increased demand for Covid-19 tests would be good for pathology laboratories as people travel across states around the festival season.

The tech sector was the only drag on the market as it ended 0.9 per cent lower, snapping a 3-day winning streak, with WiseTech Global falling the most.

Dairy firm Bega Cheese tumbled 10.3 per cent and was the top decliner on the benchmark after warning of profit hit from strong domestic competition.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index remained flat at 12,862.71 points.

REUTERS