Storms ease in shaken share markets

[Pelican Press 0]

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Storms ease in shaken share markets

*********** investors hope the worst is over after the share market finished higher following a brutal sell-off that sent it to a 10-week low.

The benchmark S&P/ASX200 index on Tuesday finished up 31 points, or 0.41 per cent, to 7680.6, while the broader All Ordinaries was up 31 points, or 0.4 per cent, to 7890.

The ASX200 lost 5.81 per cent over Friday and Monday — its worst two-day sell-off since the start of the COVID-19 pandemic.

“After yesterday’s wild day, there is some good news in that markets seem to be finding a footing and settling down after a painful day of trade,” eToro market analyst Josh Gilbert said.

Capital.com analyst Kyle Rodda was more cautious, saying that while relative calm had returned to the markets, “it’s not clear whether it’s because the tempest has passed or we are merely in the eye of the storm”.

But there had been a more sober assessment of the US economic

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after Monday’s panic selling, Mr Rodda said.

The market was already up but gained a bit more even as the Reserve Bank of Australia left rates on hold while retaining its hawkish tone to its post-meeting statement.

“At the risk of reading too much into the RBA’s words, if anything we’d view it as more hawkish than June and May,” wrote ANZ economist Adam Boyton, noting the board’s continued emphasis on controlling inflation.

Mr Boyton said that ANZ Research continued to believe the RBA’s next move would be a rate cut in February – which is later than some other analysts are predicting.

Four of the ASX’s 11 sectors finished lower and seven ended higher.

Energy was the biggest ******, retreating 2 per cent on a big loss from its largest component, Woodside Energy.

The giant fell 5.1 per cent to a more than two-year low of $25.12 after announcing after Monday’s close that it would acquire a green carbon ammonia project in Texas for $3.6 billion.

S&P Global Ratings said while the acquisition would help Woodside achieve its emission targets, it would also push its financial envelope and materially reduce its rating headroom.

In tech, Audinate plunged 36.3 per cent to a more than one-year low of $8.48. after the professional media networking company announced it expects to make a smaller profit in 2024/25 than the year before.

“Whilst we expect FY25 to be a transitional year, the long-term strategic thesis for Audinate ******** strong,” said chief executive and co-founder Aidan Williams.

The Big Four banks were mostly higher, with Commonwealth Bank up 2.2 per cent to $127.69, NAB gaining 0.7 per cent to $35.05 and Westpac climbing 0.5 per cent to $27.82.

ANZ was the outlier, down 0.5 per cent to $27.30.

In the heavyweight mining sector, BHP rose 0.4 per cent to $41.26, Rio Tinto dipped 0.3 per cent to $118.29 and Fortescue climbed 1.1 per cent to $18.60.

Gold miners were mostly lower as the precious metal traded for $US2404 an ounce, down from more than $2450 last week.

Evolution dropped 1.3 per cent, Newmont fell 3.4 per cent and Gold Road Resources finished 2.1 per cent lower.

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