Why Australian stocks closed higher?

  • February 23, 2021 04:42 PM AEDT
  • Tribhuwan
    Author Tribhuwan
    37 Posts

    Tribhuwan is an Analyst at Kalkine Media Pty Ltd. He writes on financials, consumers products, fast-moving consumer goods, emerging companies, and economic policy. In these areas, he also covers global businesses. He is a graduate in BCom (Hons) from...

Why Australian stocks closed higher?

Source: Shutterstock

Summary

  • Energy, materials, industrials, real estate, and financials have helped the ASX 200 to extend gains strongly in the afternoon session.
  • Commodity demand has also picked over the recent past, and it is evident in commodity-linked stocks.
Gold MTF non-AMP

Australian shares recovered on Tuesday. ASX 200 index closed the day at 6839.2 points, up 0.86% from the previous close. Sectors that led the gains in the benchmark index were energy, A-REIT, materials, industrials, financials.

But information technology, telecommunication services, consumer discretionary, utilities were lower on Tuesday. Lately, there have been many concerns over rising yields as investors dumped safe haven assets.

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Australian bond yields fell today. Meanwhile, the earnings season reports continued to flow, and the companies continue to announce dividends. Australian investors will likely have a solid period for dividends as most dividends are recovering.

Best performing stocks in the ASX 200 were Adbri Ltd, AUB Group, Corporate Travel Management, Bank of Queensland, and Lendlease Group. Stocks with most losses included Perenti Global, Austal Ltd, Domino’s Pizza, G8 Education, and Afterpay Ltd.

Cyclical sectors led the recovery in Australian markets today. Commodity prices are rising, and this is evident in the market move towards companies leveraged to commodities, including oil, copper, coal, iron ore, gold, silver.

Meanwhile, bitcoin was seen lower significantly at the time of close. Janet Yellen had raised concerns over the much-hyper cryptocurrency.

Read more: How ASX shares are staging a recovery?

 

 


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