ASX 200 tracks Wall Street higher; energy stocks lead gains

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Highlights: 

  • Australian equities opened higher today tracking advances on the Wall Street 
  • The benchmark index ASX 200 was up 0.20% at 6,537.10 points in the initial few minutes of trade 
  • Eight of 11 sectors were in the green with energy and utilities leading gains  

Australian share market opened higher on Wednesday (22 June) taking cues from Wall Street, which saw a relief rally overnight following an extended weekend. However, gains were capped as IT and consumer discretionary stocks came under selling pressure. The benchmark index ASX 200 was up 0.20% at 6,537.10 points in the initial few minutes of trade. After falling for seven days in a row, the ASX 200 closed 1.41% higher at 6,523.80 points on Tuesday.  

US stocks witnessed a pullback from oversold levels Tuesday as investors digested US Fed’s 75 basis points rate hike. All the three major US indices closed higher in the overnight trading on Wall Street. Investors showed an inclination towards mega-cap growth and energy stocks which faced a difficult time in a rout in the past few days over concerns of a global economic downturn.   

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On Tuesday, the S&P 500 closed 2.45% higher at 3,764.79 points. All the 11 major sectors of the S&P 500 closed higher in the short-term rebound, where the top gainers were the energy, healthcare, and technology sectors. Technology stocks got a boost on Tuesday with the tech-heavy Nasdaq Composite ending 2.51% higher at 11,069.30 points, while the Dow Jones Industrial Average settled 2.15% higher at 30,530.25 points. The shares of Microsoft Corporation were up nearly 2.46% at US$253.74, while Apple Inc shares closed 3.28% higher at US$135.87 points yesterday.   

Meanwhile, investors are keeping an eye on commentary from Fed Chairman Jerome Powell when he testifies about the state of the economy before Congress on both Wednesday and Thursday.   

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Newsmakers:  

Humm Group limited (ASX:HUM) 

The share price of ASX-listed consumer finance solutions provider remained in focus today (22 June) after the company unveiled changes to its’ board of directors. Humm has said that majority of its directors have concluded that they cannot remain on the Board of Directors with Andrew Abercrombie after the termination of the proposed sale of Humm Consumer Finance to Latitude.    

BlueScope Steel Limited (ASX:BSL) 

The share price of ASX-listed steel manufacturer BlueScope Steel Limited remained on investors’ radar on Wednesday (22 June) after the Company announced it has appointed Bjarke Ingels Group (BIG) to develop a Master Plan for the Company’s 200 hectares of excess landholdings adjacent to the Port Kembla Steelworks.  

As per the announcement, BlueScope is approaching its 100-year anniversary at Port Kembla in 2028 and is now looking to chart a course for the next 100 years.    

Market Action:  

Coming to the top ASX 200 gainers, Fletcher Building Limited (ASX:FBU), Mesoblast Ltd. (ASX:MSB), and IRESS Ltd. (ASX:IRE) led the pack with 5.630%, 4.444%, and 3.646% gains, respectively. On the flip side, News Corporation (ASX:NWS), and St Barbara Limited (ASX:SBM) were the top losers, falling 4.165% and 3.983%, respectively.  

On the sectoral front, eight of 11 sectors were seen trading higher during early morning trade today. Energy and utilities stocks led gains in the market while IT and Consumer Discretionary shares witnessed profit booking. Healthcare, telecom, consumer staples and financials also added to the gains in the market. 

Read More: Emerald Resources (ASX:EMR) shares gain by increasing stake in Bullseye  


 


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