Tech stock rally leads bourse to near-record high

The ASX came within 2.3 points of breaking its record high set almost two and a half years ago.

The Australian share market extended its gains on Wednesday for a seventh straight day, it’s longest streak in six months.

It went within 2.3 points of its record intraday high of 7,632.8 set in August 2021.

But despite reaching an intraday high of 7,630.5 early in the session, the benchmark erased much of its gains in the afternoon, adding 0.3 per cent, or 21.8 points, to 7,600.2 at the closing bell.

The broader All Ordinaries added a similar amount, reaching 7,835.

The Australian dollar was trading higher, rising 0.5 per cent to US66.14c, its biggest daily increase since mid-December.

The ASX has booked its longest winning streak since June after finishing in the green for seven straight sessions. Picture: NCA NewsWire / Gaye Gerard

IG Australia market analyst Tony Sycamore said at its intraday peak, the benchmark had recaptured all the ground it lost during its 4 per cent sell-off in January.

“If there was a blemish to be found, the index fell narrowly short of breaking the 7632.8 record high from August 2021, encouraging sellers to step in after lunch,” Mr Sycamore said.

“Whether the ASX200 gets another chance at record highs after tomorrow’s all-important December quarter CPI data remains to be seen.”

Seven of 11 industry sectors finished in the green, with tech stocks the standout performers, adding 1.9 per cent, after the US tech-heavy index, the Nasdaq, jumped 1.1 per cent overnight.

Locally, Xero added 1.6 per cent to $110.98, Wisetech rose 1.3 per cent to $72.30 and Macquarie Technology Group added 0.8 per cent to $71.50.

Meanwhile, investors appeared unfazed by fresh retail sales figures, released by the Australian Bureau of Statistics on Thursday, which showed spending plunged by 2.7 per cent in December. Economists were forecasting a more modest decline of 2 per cent.

Investors shrugged off fresh retail turnover data that showed a 2.7 per cent decline in retail sales in December. Picture: NCA NewsWire / Gaye Gerard

In corporate news, Megaport was the top gainer on benchmark, vaulting 27.6 per cent to $12.48 as it posted a 5 per cent jump in revenue over the December quarter to $48.6m.

Shares in Capricorn Metals added 1.5 per cent to $4.63, after the gold producer said production of the precious metal at its Karlawinda Project had reached 30,399 ounces in the December quarter, up from 29,700 ounces in the prior quarter.

Copper and zinc producer Sandfire Resources climbed 3.8 per cent to $7.12. The firm posted quarterly underlying earnings before interest tax, depreciation and amortisation of $84m, up from $81m a year earlier.

Nickel Industries rocketed 20.8 per cent to 73c, its best ever intraday gain. The nickel miner reported record output of 34,450 metric tons from its rotary kiln electric furnace for the December quarter.

Toll roads operator Atlas Arteria rose 2.2 per cent to $5.47 after booking a 5.9 per cent increase in revenue over the December quarter after a strong performance in its French operations.

Originally published as Tech stock rally leads bourse to near-record high