- Strong handover from Wall Street boosted investors’ sentiment on Friday
- The benchmark ASX 200 index gained over 1% in the first one hour of trading
- All 11 sectors were trading in the green today
The Australian share market opened higher on Friday (27 May) following a positive lead from Wall Street. The benchmark ASX 200 index gained 77.10 points or 1.09% to 7,183.0 points in the initial few minutes of trading led by broad-based buying across sectors. The benchmark index closed 0.69% lower at 7,105.9 points on Thursday.
Wall Street stocks rallied on Thursday following impressive earnings and annual forecasts from several retailers including Macy’s while data from the Commerce Department confirmed that the US economy underwent contraction in the first quarter of 2022 due to a record trade deficit, easing concerns related to aggressive interest rate hikes.
On the sectoral front, it seems that the market is in bulls' control as all the 11 sectors were trading higher during today's early morning trading session. At one point, the information technology index led the gains, followed by Financials, Consumer Discretionary, Energy sector and others.
Mining stocks, which fell on Thursday following China's warning on June quarter growth, also rebounded today, contributing to the gains in the ASX. Energy stocks also witnessed buying, with the energy sub-index of ASX rising over 1.5%, following nearly 4% gains in crude prices last night.
It is to be noted that Gold prices saw an uplift despite US Federal Reserve's aggressive monetary policy tightening plan. The US gold futures closed 0.07% higher at US$1,847.6
The ASX All Ordinaries index was up 1.11% at 7,420.8 points at 10:13 AM AEST.
On Thursday, the Dow Jones Industrial Average jumped 1.61% to 32,637.19, while the S&P 500 rose 1.99% to 4,057.84 points. The NASDAQ Composite ended the session 2.68% higher at 11,740.65 points.
Coming to the top ASX 200 gainers, PointsBet Holdings Limited (ASX:PBH) and Polynovo Limited (ASX:PNV) were leading the pack with 7.600% and 5.907% gains, respectively. On the flip side, Appen Limited (ASX:APX) and CSR Limited (ASX:CSR) were the top losers, falling 23.459% and 3.266%, respectively. Appen told the ASX Telus International, which launched a takeover bid for the data company, has walked away from the AU$1.2 billion takeover bid.
Newcrest Mining Limited (ASX:NCM):
The share price of ASX-listed gold producer is on investors' radar after it provided an update on the Paterson Farm-in Project and Wilki Farm-in Project exploration programmes.
Newcrest Mining has said that it has identified seven high-priority copper, gold and pathfinder anomalies. Both IGO Limited (IGO) and Newcrest Operations Limited (Newcrest) are fully funding ongoing exploration activities at Paterson Farm-in project and Wilki Farm-in project. Both these projects involve diamond drilling.
Kelsian Group Ltd (ASX:KLS):
The shares of ASX-listed tourism and public transport company Kelsian Group Ltd are in focus today on account of an ASX update by the company wherein it announced that it has signed a deal concerning the sale of East London Bus Operations.
Kelsian revealed that it has entered into binding agreements with Stagecoach Bus Holdings Limited to sell and divest Kelsian's East London public bus transport service operations at Lea Interchange for approximately AU$35 million.
Commonwealth Bank of Australia (ASX:CBA)
The share price of ASX-listed financial service provider Commonwealth Bank of Australia will be on investors' watchlist today after the banking giant revealed via an ASX announcement that it has issued JPY 30.5 billion worth of subordinated notes.
The JPY 30.5 billion Fixed Rate Resettable Subordinated Notes, due 2032, were issued pursuant to CBA's U.S.$70 billion Euro Medium Term Note Programme (the EMTN Programme).