Banks, grocery giants & gold miners help ASX 200 climb 0.4%

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Banks, grocery giants & gold miners help ASX 200 climb 0.4%

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Image source: ©2022 Kalkine Media®

Highlights

  • ASX 200 lost some early gains but managed to close 0.4% higher at 7,155.2 points.
  • Big four banks, supermarket duopoly Woolworths and Coles and gold stocks drove gains.
  • Global growth concerns and weak US economic data weighed on Wall Street overnight. 

A huge chunk of market experts opine that global economic growth is slowing. The tightening in global monetary and financial conditions seems to be slowing spending growth, heightened by the high costs of food and energy staples. Adding onto pressures is the European geopolitical uncertainty that is weighing heavily on business confidence and investment goals. Covid-19 scare remains, with restrictions in China continuing to worsen supply chain disruptions and adding cost and complexity to trade.

ASX 200

©2022 Kalkine Media®

How did ASX 200 perform?

Today, Australian shares were poised for a modest opening advance. At open, Northern Star Resources (ASX:NST), Newcrest Mining (ASX:NCM) and Silver Lake Resources (ASX:SLR) led the ASX 200 higher as gold prices extended gains for a fifth straight session overnight. Most sectors traded higher barring Information technology , after renewed selling on Wall Street, triggered by Snap’s warning and data directing to slowing US economic growth.

Eventually, the ASX 200 closed up, gaining 26.40 points or 0.37% to 7,155.20. Over the last five days, the index has lost 0.38% and 0.56% over the last 52 weeks. Gold miners majorly propelled the push. Overall, the session was marked by gains for consumer staples, banks, and gold miners.

On the sectoral front, seven of 11 sectors ended higher. Consumer Staples was the best performing sector, gaining +1.54% and rebounding from its recent decline. This sector is off -3.16% for the past five days.

Who gained? Who lost?

The top performer today was Costa Group Holdings (ASX:CGC), up 8.5%, after the company provided a trading update and reaffirmed its guidance at today’s AGM. The fruit and vegetable grower and marketer expects its earnings to be A$5 million higher this year while its NPAT is predicted to fall A$6.4 million.

Costa Group was followed by Nufarm (ASX:NUF). Other gainers of the day were Perseus Mining (ASX:PRU), Orica Limited (ASX:ORI) and Evolution Mining (ASX:EVN).

On the other side, in the red zone of the ASX 200, BHP Group (ASX:BHP) was the top laggard, down over 10%. It was followed by Chalice Mining (ASX:CHN), after the Company notified about a successful A$100 million placement to accelerate exploration and pre-development activities at Julimar.

Other stocks in this zone were Pro Medicus (ASX:PME), Elders Limited (ASX:ELD) and PointsBet Holdings (ASX:PBH).

Asian and global market

Despite a sharp fall in the overnight US markets, Asian indices exhibited a mixed trend in today's trades. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.35%, Seoul and Taiwan ticked upwards 0.61% and 0.2%, respectively. Shanghai’s, Hong Kong’s, and China’s CSI300 indexes opened marginally higher. Japan’s Nikkei share average was down 0.18%.

Overnight on Wall Street, the Nasdaq Composite dropped 2.35% and the S&P 500 lost 0.81%.

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