On Friday, the ASX 200 index closed 0.48% higher, ending at 7,145.1 points. Over the last five days, the index has lost 1.29%.
The index recovered after the U.S. Congress raised the debt ceiling, averting the default crisis just days before the deadline. The deal has lifted the indexes globally, with most of them closing higher.
The index was well supported by gold and mining stocks. Among the sectors, Health and Technology also traded in the green zone.
Investors are eagerly anticipating the upcoming central bank policy meeting scheduled for next week, seeking further guidance on market direction. Many experts and economists have differences of opinion on whether the RBA (Reserve Bank of Australia) will raise interest rates or hold them at its next meeting on Tuesday.
The Australian benchmark index is trailing behind its counterparts this year. YTD, the index has gained 1.51%. However, this underperformance is not justified considering the country’s strong economic activities. Some analysts also believe that government policy is strongly focused on promoting growth, which is expected to facilitate increased wages and spending.
Top Movers of the Day
Uranium mining company Paladin Energy Limited (AU:PDN) gained more than 10% in a day after Tuesday’s heavy fall of 20%. The stock tumbled after Namibia’s mining minister, Tom Alweendo, stated that they are contemplating acquiring minority stakes in mining and petroleum companies. This move aims to maximize the country’s benefits from its mineral resources.
Graphite mining company Syrah Resources Limited (AU:SYR) was up by 7.14%.
Among the penny stocks, Grand Gulf Energy Limited (AU:GGE) shares traded up by 33% on Friday. The company is engaged in helium exploration in the U.S. The stock rallied after the company confirmed that there is substantial helium flow at their wells.
On the losing side, the banks were under pressure due to a more aggressive approach from the RBA. The National Australia Bank (AU:NAB) was down by 0.96%, and Westpac Banking (AU:WBC) slid by 0.29%.
