AUS
NZ
UK
CA
USA
IND
Highlights
- The S&P/ASX 200 Index saw a modest increase of 0.2% as tech stocks outperformed.
- Iron ore prices continued to fall, weighing on the mining sector.
- IDP Education (IDP) saw the largest gain after positive analyst upgrades.
Australian shares edged higher on Tuesday afternoon, with the S&P/ASX 200 Index climbing 0.2%, or 13.4 points, to 8270.8. The broader All Ordinaries Index also gained 0.1%, while eight out of 11 sectors saw positive movement. Technology stocks, in particular, experienced strong performances, although these were partially offset by declines in the mining and utilities sectors.
The market's upward momentum followed a positive session on Wall Street, where the S&P 500 ended a five-day losing streak, rising by 0.4%. Technology stocks were the key driver of this recovery, with the Nasdaq rising 1%. Six out of seven major technology stocks, including (ASX:NVDA), closed higher, fueling optimism for Australian tech stocks.
Locally, the technology sector saw a 1% rise, with notable gains from Aristocrat Leisure (ASX:ALL) and SiteMinder (ASX:SDR), both rising by 3%. These companies mirrored the performance of global tech stocks, benefiting from a shift towards technology-focused investments.
On the flip side, Australian miners continued to face challenges, particularly as iron ore prices dropped below $US98 a tonne. This downturn has led to bearish sentiment in the sector, compounded by concerns over China's economic outlook, particularly its construction exports. The latest data showing a slight dip in China’s manufacturing sector activity also dampened sentiment. As a result, (ASX:FMG) Fortescue saw a 3.2% drop, while (ASX:BHP) BHP and (ASX:RIO) Rio Tinto posted more modest losses.
Utilities also faced difficulties, with stocks like (ASX:AGL) AGL Energy falling by 2.1%. The yield on 30-year US Treasuries climbed to its highest point in over a year, placing additional pressure on the sector. The climb in treasury yields is attributed to supply concerns and weak demand in the initial stages of this week’s treasury auctions.
In contrast, the healthcare and financial sectors saw increased interest, as traders sought defensive investments. Notably, (ASX:RHC) Ramsay Health Care gained 1.9%, driven by analyst views that the company is undervalued.
Among the stocks drawing attention, (ASX:IDP) IDP Education emerged as the biggest gainer, surging 6.9%. Analysts have upgraded the company’s stock to "outperform" due to anticipated positive results, encouraging a rally in its shares.
Other noteworthy movements included (ASX:PNR) Pantoro, which rose 2% following news of its upcoming drilling program at the Norseman project in Western Australia. Additionally, (ASX:CMM) Capricorn Metals rose 2.4% after posting record quarterly gold production for the December quarter.
Despite the mixed performance across sectors, Australian stocks managed to close in positive territory on the back of strong tech and defensive sector performances.
