Australia stock market finished session in positive territory after hitting an intraday record high on Thursday, 28 March 2024, extending the gains in the previous session, following the broadly positive cues from global markets overnight. Meanwhile, risk sentiments underpinned further by better-than-expected domestic inflation data which strengthened the case of a sooner-than-expected interest rate cut in the country.
Data on Wednesday showed that Australian consumer price inflation held at a two-year low in February, contrary to expectations for a slight uptick, making a case for interest rates to be cut later in the year. Meanwhile, data from the Australian Bureau of Statistics (ABS) showed that retail sales rose modestly in February
At closing bell, the benchmark S&P/ASX200 index advanced 77.25 points, or 0.99%, to 7,896.86. The broader All Ordinaries index added 80.14 points, or 0.99%, to 8,153.75.
All 11 sectors ended higher along with the S&P/ASX 200 Index. Materials was the best performing sector, gaining 1.8%, followed by A-REIT (up 1.73%), telecommunication services (up 1.45%), utilities (up 1.29%), industrials (up 1.09%), and energy (up 1.08%) sectors.
The top performing stocks in S&P/ASX200 index were STRIKE ENERGY and ARCADIUM LITHIUM PLC, up 8.33% and 8.31% respectively. The bottom performing stocks in S&P/ASX200 index were FISHER & PAYKEL and AUDINATE GROUP, down 2.75% and 2.15% respectively.
Shares of material sector advanced amid firmer gold, iron ore and lithium prices. Heavyweights Rio Tinto, Fortescue and BHP Group climbed between 1.5% and 1.8%.
ECONOMIC NEWS: Australia Retail Sales Up 0.3% On Month In February-- Australia retail sales that are a measure of the country?s consumer spending, rose 0.3% on a monthly basis in February from the previous reading of a 1.1% rise, according to the official data published by the Australian Bureau of Statistics (ABS) on Thursday. The figure came in weaker than market expectations with an increase of 0.4%.
Australian Consumer Inflation Expectations Dip to 4.3% in March 2024: - Consumer inflation expectations in Australia decreased to 4.3% in March from 4.5% in February, the lowest level since October 2021. This easing is attributed to a moderation in goods prices following rate hikes totaling 425 basis points over the past two years by the central bank. Services inflation also slowed but at a more gradual pace. RBA Governor Michele Bullock indicated a flexible approach to curb inflation amid economic growth slowdown, emphasizing that the interest rate path remains uncertain and data-dependent. Headline inflation stood at 4.1% in Q4 2023, down from 5.4% in Q3 and a peak of 7.8% in Q4 2022.
Australia's Private Sector Credit Grows by 0.5% in February 2024- Private sector credit in Australia increased by 0.5% month-on-month in February 2024, unchanged from an upwardly revised figure in the previous month. This marks the fastest pace in four months, driven by slightly faster growth in personal use credit (0.3% vs 0.2% in January), while business credit expanded slightly softer (0.6% vs 0.7%). Housing credit remained stable at 0.4%. On an annual basis, private sector credit grew by 5.0% in February, the most in six months, following a 4.9% gain in January.
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