- The ASX 200 gained 1.2% by mid-session on Tuesday amid broad-based buying.
- Barring utilities, all sectors were flashing in the green.
- The market rally was driven by financial, tech, telecom and property stocks.
- On Wall Street, all three major indices closed higher in overnight trade.
- Oil prices rebounded with Brent crude rising 1.9% to US74.09$ a barrel.
Snapping a two-session losing streak, Australian shares rebounded strongly from a seven-week low on Tuesday, led by gains in financials, tech, telecom and property stocks. The ASX 200 benchmark index was trading near the day’s high by mid-session, with most of the sectoral indices flashing in the green. Investors shifted focus to economic events as they seemed to have set aside concerns about the impact of the infectious Omicron COVID-19 variant on the economic recovery.
Reversing previous session losses, the ASX 200 index rose 86.20 points or 1.19% to 7,326 by mid-session trade. The benchmark index opened higher today following firm global cues and gained as much as 1.23% during the trade so far.
ASX climbs 1.2%; Credit Corp, AMP, Orocobre lead rally
In overnight trade, the US and European markets closed higher, while oil prices rebounded amid hopes the new coronavirus variant would have a milder impact on the global economic growth than initially feared. All the three major indices ended higher on Monday. The Dow Jones Industrial Average gained 0.7%, while the S&P 500 rose 1.3%. The Nasdaq Composite settled 1.9% higher.
Back home, the equity market witnessed broad-based buying today, with ten of 11 sectors floating in positive terrain. The financial sector was the top performer with a 1.7% gain, followed by telecom, which rose 1.3%. The A-REIT, tech, consumer discretionary and industrial sectors also witnessed surge in buying with each gaining over 1%. Among others, energy, health care and consumer staples sector also traded higher with modest gains.
Bucking the bullish trend, the utilities sector was the only loser on the sectoral pack, trading 0.4% lower by the mid-session.
Top gainers and losers by mid-session
The top performing stock among the ASX pack was diversified financial group Credit Corp (ASX:CCP), which gained 9.4% by mid-session. Some of the other top gainers were minerals explorer Orocobre (ASX: ORE), financial services business AMP (ASX:AMP), food service retailer Collins Foods (ASX: CKF), and law firm Omni Bridgeway (ASX:OBL).
On the losing side, West-African gold miner Perseus Mining (ASX:PRU) was the worst performer with a 2.5% loss. Some of the other notable losers were steel manufacturer BlueScope Steel (ASX:BSL), dairy and cheese business Bega Cheese (ASX:BGA), metal recycling firm Sims (ASX:SGM), and financial services firm Netwealth Group (ASX:NWL).
Shares in news
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Shares of Macquarie Group (ASX: MQG) rose 2.5% after the diversified financial group updated about its share purchase plan (SPP). The company is expected to raise AU$1.3 billion by issuing around 6.8 million fully paid ordinary shares at AU$191.28 per share.
Shares of financial services company AMP (ASX: AMP) climbed nearly 7% after it unveiled details on the proposed demerger into two businesses – AMP and AMP Capital’s Private Markets business (PrivateMarketsCo).
Australian debt buyer Credit Corp (ASX: CCP) saw its shares surging nearly 9% by mid-session after it acquired the assets of Radio Rentals from Thorn Group for AU$60 million.
Shares of Westpac (ASX: WBC) rose over 1% after the lender entered into a deal with market regulator Australian Securities and Investments Commission (ASIC) to resolve six separate longstanding matters through agreed civil penalty proceedings.
Automotive products manufacturer GUD Holdings (ASX: GUD) shares entered a trading halt, pending an announcement regarding an entitlement offer. The company has inked a pact to acquire towbars and trailer parts business AutoPacific Group for AU$744.6 million.