ASX gains, led by tech and consumer stocks
Last updated: 4:35pm AEST
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The ASX has pocketed strong gains for the second successive day, following yesterday afternoon’s softer than expected interest rate rise.
The S&P/ASX200 closed up sharply today, gaining 116.40 points or 1.74% to 6,815.70 and crossing above its 20 day moving average.
The broader All Ordinaries index gained strongly, up 125.60 points or 1.82% to 7,030.90 and also crossing above its 20 day moving average.
Ten of 11 sectors ended higher along with the S&P/ASX 200 Index. Information Technology was the best performing sector, gaining 3.84% and 5.15% for the past five days.
Tech stocks have taken a significant hit this year, as access to capital tightened. Yesterday’s less aggressive rate rise may send a signal that the squeeze is set to reduce, leading to improved economic conditions for the technology sector.
Technology stocks have surged since yesterday’s RBA announcement, with stocks Wisetech Global Ltd. (ASX:WTC), Xero Limited (ASX:XRO), Megaport Ltd. (ASX:MP1) all continuing to rise strongly again today.
The interest rate decision has also bolstered the Consumer Discretionary sector, which was up more than 2.5% for the day.
Among the sector’s top gainers was women’s apparel retailer, City Chic Collective Ltd (CCX), which rose more than 9% for the session.
Tech recovery leads ASX gains
Last updated: 1:05pm AEST
Australian shares continued trading strongly in the afternoon, with softer than expected RBA interest rate rises and Wall Street gains continuing to inspire resurgent market confidence.
The S&P/ASX200 was up, gaining 98.60 points or 1.47% to 6,797.90.
The broader All Ordinaries index was also up sharply, gaining 106.30 points or 1.54% to 7,011.60.
Information Technology was the top performing sector, up more than 3.2% for the day.
The sector’s stocks have seen a surge in buying following the RBA’s softer than expected rate rise yesterday.
The S&P/ASX 200 Information Technology (XIJ) index jumped more than 4.9% yesterday, with stocks Wisetech Global Ltd. (ASX:WTC), Xero Limited (ASX:XRO), Megaport Ltd. (ASX:MP1) leading the charge. All three stocks have continued their gains in today’s session.
ASX gains in early trading
Last updated 10:55 am AEST
The ASX opened higher, following gains on Wall Street, and softer than expected rate rises from the Reserve Bank of Australia (RBA) yesterday.
The S&P/ASX200 was up sharply, gaining 120.10 points or 1.79% to 6,819.40.
9 of 11 sectors were higher along with the S&P/ASX 200 Index.
Information Technology was the best performing sector, gaining 3.46% and 4.77% for the past five days.
Pre-market breakdown
ASX shares are set to continue on from yesterday’s gains after the softer than expected interest rate rise saw the market rise more than 3.7%
The Reserve Bank of Australia (RBA) increased its benchmark interest rate by 0.25%, lower than the 0.50% increase many within the market anticipated, providing traders a significant confidence shot.
ASX futures were up 1.43%, sitting at $AU6,792 at around 6:30am AEST.
Local market sentiment was further bolstered by continued gains on Wall Street overnight, with the Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 all trading in the green.
Ahead of Monday’s local market opening, the Australian dollar was around 0.6% lower, to $US64.74c.
WTI Crude was up 3.2%, at around US$86.3 a barrel.
Gold was up by about 1.5%, at around $US1724 an ounce.
Meanwhile, Bitcoin was up by around 2.7%, to about AU$30,995.
Market watch
Eyes will be on the tech sector today, to see how stocks continue after yesterday’s strong gains following the softer than expected interest rates.
Tech stocks have taken a significant hit this year as access to capital tightened. Yesterday’s less aggressive rate rise may send a signal that the squeeze is set to reduce, leading to improved economic conditions for the technology sector.
Technology stocks surged after the RBA announcement. The S&P/ASX 200 Information Technology (XIJ) index jumped more than 4.9%, with stocks Wisetech Global Ltd. (ASX:WTC), Xero Limited (ASX:XRO), Megaport Ltd. (ASX:MP1) leading the charge.
