Australia stock market finished higher for fourth straight session on Tuesday, 07 May 2024, on tracking positive lead from Wall Street overnight, with Reserve Bank of Australia's (RBA) monetary policy decision to left interest rates unchanged were further supported the upward momentum. Australian market registered gains across most sectors led by technology stocks as well as mining and energy stocks amid firmer commodity prices.
At closing bell, the benchmark S&P/ASX200 index advanced 110.93 points, or 1.44%, to 7,793.30. The broader All Ordinaries index was up 113.24 points, or 1.42%, to 8,065.50.
All 11 sectors ended higher along with the S&P/ASX 200 Index. Utilities was the best performing sector, gaining +2.82%, followed by consumer discretionary (up 1.91%), energy (up 1.7%), and industrials (up 1.58%), and information technology (up 1.52%) sectors.
The best-performing stocks in S&P/ASX200 index were PALADIN ENERGY and AGL ENERGY, up 8.44% and 7.40% respectively. The bottom performing stocks in S&P/ASX200 index were SIMS and BAPCOR, down 6.35% and 3.45% respectively.
The Reserve Bank held interest rates steady at 4.35%, but also warned that high petrol prices and a tight jobs market would push inflation higher in the coming months. ..
Among individual stocks, AGL shares jumped 7.1% after the energy giant raised its earnings forecast for the second time in three months.
ANZ Bank slipped 0.1% despite the announcement of a $2 billion share buyback after the lender reported a 7% fall in first-half cash profits.
ECONOMIC NEWS: Australia Central Bank Keeps Key Rate Unchanged - The Reserve Bank of Australia left its benchmark interest rates unchanged, as widely expected, on Tuesday. The policy board of the RBA, led by Governor Michele Bullock, decided to maintain the cash rate target at 4.35%. The board also retained the interest rate paid on Exchange Settlement balances at 4.25%. The Board expects that it will be some time yet before inflation is sustainably in the target range and will remain vigilant to upside risks, the bank said. The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out, the bank added. The bank said it will rely upon the data and the evolving assessment of risks.
Australia Retail Sales Slump 0.4% In March- The value of retail sales in Australia was down a seasonally adjusted 0.4% on month in March, the Australian Bureau of Statistics said on Tuesday - coming in at A$35.663 billion. Individually, sales were down for household goods, clothing, department stores, other sales and cafes, while food sales were up. For the first quarter of 2024, retail sales volume sank 0.4% on quarter after rising 0.4% in the three months prior.
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