Australia: Shares rise as investors await key earnings reports, RBA minutes
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AUSTRALIAN shares rose on Monday (Aug 15), as a strong finish last week on Wall Street boosted investor sentiment ahead of the Reserve Bank of Australia’s policy meeting minutes and major corporate earnings reports later this week.
The S&P/ASX 200 index ended 0.5 per cent higher at 7,064.30. The benchmark had closed 0.5 per cent lower on Friday.
“Sentiment is still weak and the market is reacting to reporting season catalysts,” said Mathan Somasundaram, CEO of Deep Data Analytics.
“Corporate earnings are key with the US now moving into downgrade cycle. The Aussie economy is better placed than most to ride out the slow growth cycle but it will be affected.”
The corporate earnings season in Australia will pick up pace this week, with global miner BHP Group, gas producer Santos and biotech firm CSL reporting their full-year results.
Miners rose 0.7 per cent to lead gains on the benchmark. Core Lithium jumped 9.9 per cent after saying it had received approvals for a survey and a drilling, while Allkem rose 3.4 per cent on signing a lithium deal in Argentina.
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Steel producer Bluescope Steel jumped 3.9 per cent after its annual profit beat estimates.
Technology stocks tracked their Wall Street peers higher to rise 1.3 per cent.
Energy stocks slid 0.8 per cent on weaker oil prices. Beach Energy slumped 11.1 per cent to the bottom of the benchmark index after reporting a weaker-than-expected annual profit.
Financials closed 0.2 per cent lower. Westpac Banking, Australia’s third-largest mortgage lender, said its bad debt fell to a multi-year low in the June quarter. Its shares fell 1 per cent, while the other 3 of the so-called “big four” banks rose between 0.04 and 0.1 per cent.
Somasundaram said minutes of the Reserve Bank of Australia’s August policy meeting due on Tuesday and unemployment numbers due on Thursday will be the key local events to look for this week.
New Zealand’s benchmark S&P/NZX 50 index ended 0.5 per cent higher at 11,789.03.
All eyes are on the Reserve Bank of New Zealand’s policy meeting on Wednesday, with markets expecting a fourth straight half-point rate hike to contain soaring inflation. REUTERS
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