Local market rallies in spite of leads
The Australian market has surprised again today, this time to the upside, with the ASX200 surging over 75 points or 1.4%.
Despite weak international leads from US and Europe overnight, and China’s continued slide, there was widespread support for the local market today. The financials, the big four banks in particular, bounced back strongly from yesterday’s flush, as concern over Fitch’s capital cries abated and bargain hunters came to the fore.
Elsewhere, energy stocks soared, buoyed by a rally in oil futures overnight. Woodside’s ‘par’ reporting result this morning was received well by investors, which suggests the market expectation was low. Origin was the other big mover, rallying over 5% ahead over its reporting tomorrow.
Other standout reporters today include Treasury Wine Estate and Seek, but for contrasting reasons. Treasury Wine Estate impressed with a sharp jump in profits and rocketed around 13%. Seek’s crowd was tougher to please, with the stock plummeting 10% despite beating analyst full year profit expectations.
The Aussie dollar remains relatively subdued, trading around 0.7330 USD.
For more information contact Jacqueline Dearle on 02 8221 2124.
Frequently Asked Questions about this Article…
The ASX200 surged over 75 points or 1.4% due to strong support from local investors, particularly in the financial and energy sectors, despite weak international leads from the US, Europe, and China.
The big four banks bounced back strongly as concerns over Fitch's capital cries eased, attracting bargain hunters and contributing to the overall market rally.
Energy stocks soared due to a rally in oil futures overnight, with companies like Woodside and Origin seeing significant gains.
Woodside's 'par' reporting result was well-received by investors, suggesting that market expectations were low, which contributed to the positive performance of its stock.
Origin's stock rallied over 5% ahead of its reporting, likely due to positive investor sentiment and anticipation of favorable results.
Treasury Wine Estate impressed the market with a sharp jump in profits, leading to a significant stock increase of around 13%.
Seek's stock plummeted 10% despite beating analyst full-year profit expectations, indicating that the market had higher expectations or other concerns about the company's performance.
The Australian dollar remains relatively subdued, trading around 0.7330 USD, reflecting the broader market conditions.
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