ASX 200 continues to climb on Wednesday after RBA rate cut
A new record high for Australia’s largest bank as well as strong gains in the energy and healthcare sector helped drive the share market to a three-month high.
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Australia’s sharemarket continued its post RBA rate cut bounce during Wednesday’s trading and is now within touching distance of the record highs set at the start of the year.
The S&P/ASX 200 rose 0.5 per cent, or by 43.5 points, to 8,386.8 points at the close.
The broader All Ordinaries also traded heavily in the green gaining 38.30 points or 0.45 per cent to 8,611.70, setting a new 50-day high.
On an overall positive day for Australian investors, nine of the 11 sectors finished higher, led by energy, utilities, healthcare and bourse heavy financials.
It was a good day for the oil producers, with Woodside gaining 1.16 per cent to $21.75 and Santos jumped 1.26 per cent to $6.45.
In the healthcare sector, ResMed climbed 4.01 per cent, while Fisher & Paykel Healthcare gained 3.08 per cent to $33.84 and CSL closed 0.48 per cent higher to $245.21.
All four major banks were also in the green led by CBA which continues to reset record highs, up 1.48 per cent to $174.98.
NAB also jumped during Wednesday’s trading up 1.16 per cent to $37.64, while ANZ gained 0.31 per cent to $28.85 Westpac firmed 0.22 per cent to $31.57.
Capital.com senior financial market analyst Kyle Rodda said Wednesday’s market rally was an extension of the gains led by Tuesday afternoon’s rate cut.
“The follow through from yesterday’s dovish cut from the RBA propelled the ASX200 higher today, with the index hitting a three month high and retesting the 8,400 level,” he said.
“The gain was broadbased, but utilities stocks led the way with heavy-weighted energy and materials stocks also supporting the market – the former rising after a jump in oil prices this morning on reports that Israel was preparing to strike Iranian nuclear facilities.”
The Australian dollar continued to climb against the US up a further 0.5 per cent against the greenback to 64.51 US cents, on the back of the continued sell-off of the US dollar.
Mr Rodda said the firming of the Aussie dollar despite more cuts coming from the RBA, could be due to the Japanese government raising interest rates.
“Another ominous sign is the simultaneous drop in the value of US Treasuries and US futures today, indicating the persistence of the “sell-America” narrative being driven by a weaker growth outlook and diminished confidence in US government and institutions,” he said.
In company news, Westpac has announced it is cutting up to 1500 roles in its biggest cut in a decade as the major bank looks to simplify processes and use more technology under its project known as Unite.
James Hardie’s share price was down 6.1 per cent to $36.10, after the company announced its quarterly update which showed a 1 per cent decline in net sales.
Shares in wearable performance tracking device and analytic tools, Catapult surged 13.7 per cent to $4.89 after a strong full-year result and an optimistic outlook, saying it can capitalise on the billions spent on sport each year.
Originally published as ASX 200 continues to climb on Wednesday after RBA rate cut
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