REITs, healthcare stocks lift ASX 200, commodities slump

Highlights

• ASX 200 regained 0.31% today, thanks to a push from REITs and healthcare stocks.
• Blackmores Limited from healthcare was the top gainer, while gold miner St Barbara lost most.
• Inflation and recessionary concerns seem to be worrying investors globally, causing a commodities slump.

In another exciting day at the local share market, Australian market representative ASX 200 gained back 0.31% today. The push was majorly propelled by REITs and healthcare sector stocks. The global commodities slump seemed to have impacted the energy and material stocks which lost maximum today. Over the past five trade sessions, the index has lost 0.95%, down 10.55% in a year.

How were sectors, indices placed?

Nine of 11 sectors closed today’s trade higher along the benchmark ASX 200 index. A-REITs remained the best performing sector, gaining 2.87%, followed by healthcare and consumer staples. Only energy and material sector stocks closed the day’s session in red, shedding about 1.9% and 1.7%.

Market volatility indicator- A-VIX was down 4.03% continuing the downward movement from yesterday. All-Ordinaries index gained slightly, up merely 0.14%. The Large cap stocks represented by ASX 50 index (XFL) were up 0.461%, while Midcap index ASX Midcap 50 (XMD) closed 0.155% lower. ASX Small Ordinaries index (XSO) also lost about 0.842%.

 Top gainers, losers

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Newsmakers of the day

• Lithium stocks grabbed headlines, with Lake Resources (ASX:LKE) leading losses among other lithium stocks like Sayona Mining (ASX:SYA) and Liontown Resources (ASX:LTR). Even mining biggie Pilbara Minerals (ASX:PLS) reversed early gains from a record lithium auction.
• Mining major Rio Tinto (ASX:RIO) and energy sector big-shot BHP Group (ASX:BHP) closed trade in red. Stocks appeared to be tracing the sectoral trend.
• Oil and gas infrastructure provider APA Group (ASX:APA) announced an estimated final dividend of 28 cents per security, for the six months ending 30 June. This was in line with the guidance reconfirmed with its interim 2022 results.
• Growthpoint Properties (ASX:GOZ) from REITs sector upgraded its FY22 funds from operations guidance. On the other hand, another notable stock with a production guidance downgrade was Ramelius Resources (ASX:RMS).

On global front

European stock markets were anticipated to open lower on Thursday. Mounting fears on a global recession from US Fed’s aggressive interest rate hikes appeared looming on investor sentiments. Market experts opine that volatility in the European markets might continue. Meanwhile, Euro Stoxx 50 futures German DAX futures and FTSE futures witnessed declines.

In the US, Nasdaq futures and S&P500 futures eased. The US dollar and treasury yield fell overnight post Fed Chair Jerome Powell’s testimony underlining his commitment to bring down inflation at all costs. He also acknowledged a ‘certainly possible’ recession sparking global fears.

In Asia, stocks in South Korea represented by KOSPI were down. Meanwhile Chinese blue chips and Japan's Nikkei edged up. Chinese tech shares in Hong Kong also rebounded sharply, after Chinese President Xi Jinping approved a plan for developing large payment firms further boosting its fintech sector.  

On commodities front

• Oil retreated and most key commodities headed south based on intensified concerns of a global economic slowdown.
• West Texas Intermediate sank alongside peer Brent. The crude oil retreat was followed by other materials and base metals like copper.
• Copper fell to its lowest level since March 2021 and iron ore prices sank.
• Even investor’s last resort, gold, was down today morning in Asia on expectations of aggressive interest rate hikes in US.
• Other precious metals, platinum and palladium were however edging higher, while silver followed the yellow metals southward trail.