Australia: Resources, banks help shares close higher, all eyes on Fed comments

AUSTRALIAN shares closed higher on Friday (Aug 26) for a third consecutive session, boosted by gains across all sectors, while focus shifts to the US Federal Reserve’s comments on future rate hike bets at the Jackson Hole economic symposium.

The S&P/ASX 200 index ended 0.8 per cent higher at 7,104.1 points at the close of trade. The benchmark edged lower for the week, snapping its 5-week rally.

Investors will be looking for clues regarding the US central bank’s path to monetary tightening going forward from Fed chair Jerome Powell’s speech later in the day.

“Market sentiment next week will be substantially driven by the Fed’s comments tonight. We are also moving into seasonally weak September soon when the reporting season will be over and macro cycles will dominate markets,” said Mathan Somasundaram, founder and chief executive of Deep Data Analytics.

Miners and mining sub-index rose 1.1 per cent for the day and added over 2 per cent for the week. Sector giants BHP Group, Rio Tinto and Fortescue Metals Group gained between 1.4 per cent and 3.8 per cent through the session.

Financials added 0.7 per cent with all of the so-called “Big Four” banks trading in positive territory. The sub-index, however, fell 1.3 per cent for the week, tracking its second consecutive week of losses.

Energy stocks too showed strength on higher oil prices, rising 1.3 per cent for the day and 6.3 per cent for the week. Majors Santos and Woodside Energy Group jumped 1.2 per cent each through the day.

Bucking the trend, gold stocks emerged as the sole loser on the benchmark, falling 2.8 per cent and tracked losses for the third consecutive week with the country’s largest gold miner Newcrest Mining shedding 3.5 per cent for the day.

In other news, hospital operator Ramsay Health Care fell 3.3 per cent after private equity giant KKR & Co pulled the plug on a near US$15 billion bid. However, a cash-and-stock bid remains on the table.

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Australia: Shares climb as miners shine, focus on Fed chair’s speech

New Zealand’s benchmark S&P/NZX 50 index ended 0.2 per cent lower at 11,608.29. REUTERS