ASX 200 rebounds, closes up 1.3% powered by energy stocks and miners

April 28, 2022 12:00 AM PDT | By Sukriti

ASX 200 rebounds, closes up 1.3% powered by energy stocks and miners — Image source: ©2022 Kalkine Media®

Highlights

ASX 200 rebounded strongly and closed on a high, up 1.3% or 95.7 points at 7356.9.

Global share markets steadied, taking comfort in tech earnings.

Challenges posed by expected aggressive tightening by Fed and qualms arising from Ukraine war continue.

Lately, the threatening combination of rising interest rates and slowing economic growth has kept investors constantly vigilant of their investment portfolios.

Mounting petrol prices, home building costs and university costs has taken Australia’s annual inflation to its highest level in over two decades. In the US, investors are assessing corporate earnings reports that have not yet been able to offset concerns about rising inflation, interest rate hikes and potential damage to global economic growth from pandemic-related lockdowns in China.

And there’s a lot in store- the Federal Reserve might raise interest rates to combat high inflation. In Australia, all eyes are now on next week’s RBA meeting as the election month sets in.

How did ASX 200 perform today?

Today at market open, the Australian share market rebounded after three straight sessions of sharp losses, catalysed by recovery in commodity prices on easing fears of China's Covid-19 lockdowns, and optimistic US tech earnings. The benchmark ASX 200 was trading 0.73% up at 7,314.5 in the first few minutes of trading, with materials sector flourishing.

Late in the afternoon, the ASX 200 was up 1.1% with energy stocks and miners like Fortescue (ASX:FMG) and BHP (ASX:BHP) lifting the bourse.

Eventually, the ASX 200 rebounded strongly and closed on a high, up 1.3% or 95.7 points at 7356.9, pushing the market to a gain for the first time since Monday. Over the last five days, the index has lost 3.11% and 4.14% over the last 52 weeks.

On the sectoral front, all sectors finished higher aside from communications. Materials was the best performing sector, gaining +3.36% and rebounding from its recent decline. This sector is off -4.94% for the past five days.

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Who gained? Who lost?

The top performer today was AMP Limited (ASX:AMP), up over 13%, after it entered into an agreement for the sale of Collimate Capital’s international infrastructure equity business to DigitalBridge Investment Holdco. It was followed by Sandfire Resources (ASX:SFR). The acquisition of the MATSA Mining Operation and strong quarterly mining and processing performance at the DeGrussa Operations was revealed in SFR’s March 2022 quarterly report today.

Next up was Fortescue Metals (ASX:FMG), up 8%, as it reported shipments of 46.5mt in the third quarter contributing to record shipments in the nine months to 31 March 2022. Other gainers of the day were OZ Minerals (ASX:OZL) and Whitehaven Coal (ASX:WHC).

On the other side, in the red zone of the ASX 200, Paladin Energy (ASX:PDN) was the biggest laggard, its stock down over 6%. The Company is now confident to work towards a formal commencement of the Langer Heinrich Mine Restart Project.

Other stocks in this zone were Silver Lake Resources (ASX:SLR), PolyNovo (ASX:PNV), Tyro Payments (ASX:TYR) and EML Payments (ASX:EML). SLR reported quarterly production of 53,822 ounces gold and 262 tonnes copper with sales of 55,390 ounces gold and 246 tonnes copper at an average sales price of A$2,493/oz and AISC of A$1,634/oz (production and AISC excludes Sugar Zone).

Investors are closely eying sinusoidal market trends

Asian and global market

Global share markets steadied today, taking comfort in tech earnings. However, an energy crisis in Europe coupled with China's lengthy lockdowns is still keeping the mood alert and have propelled the dollar to close to 20-year highs as investors look for safety and yield.

Today in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%. Indian equity benchmark indices opened in green amid a positive trend in global markets. Japan's Nikkei rose 0.6%. Markets in Tokyo, Hong Kong, Shanghai, and Seoul were also trading in the green.

Overnight on the Wall Street, stocks stabilised after a sell-off in tech stocks a day earlier. The S&P 500 saw most of a midday rally evaporate and wound up with a gain of 0.2%. The Dow Jones Industrial Average edged up 0.2% as well while the Nasdaq ended in the red zone.

Challenges posed by the expected aggressive tightening by the Fed and the qualms arising from the Ukraine war continue to do rounds, as sinusoidal market trends continue across the world.

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