Aussie share market edges higher as financials rally

The benchmark eked out a 0.1 per cent gain on Wednesday after the financials sector rallied late in trading.

Australian shares rebounded on Wednesday as the financials sector managed to pare back sharp losses in tech stocks.

The benchmark S&P/ASX200 eked out a 0.1 per cent, or 9.3 point, increase to 7733.5, while the broader All Ordinaries added just two points to 7990.3.

The Australian dollar pushed higher against the greenback to buy US65.19c.

Fresh GDP numbers released by the Australian Bureau of Statistics on Wednesday showed the economy expanded by just 0.2 per cent in the December quarter — in line with consensus forecasts.

“The Australian economy is in the midst of a cyclical low point, with policy settings and fast inflation curbing growth,” Oxford Economics head of macroeconomic forecasting Sean Langcake said.

The share market snapped a two-day losing streak after a late rally in financial stocks on Wednesday. Picture NCA Newswire/ Gaye Gerard

Six of 11 industry sectors finished in the green, led by financials up 0.8 per cent.

The big four banks all finished higher with Commonwealth Bank adding 1.2 per cent to $118.31, Westpac up 1.1 per cent to $26.94 and NAB climbing one per cent to $34.10.

ANZ shares added one per cent to $29.02 after it sold its 16.5 per cent stake in AMMB Holdings for $683.5m, reducing its shareholding to just 5.2 per cent.

Gold miners rallied as bullion hit a record high $US2141.79 an ounce before losing ground later in the session.

Perseus Resources added 1.8 per cent to $1.96 and Ramelius Resources climbed one per cent to $1.59.

Tech shares were the worst performing, down 1.4 per cent, after tracking losses on Wall Street overnight where the Nasdaq fell 1.7 per cent as Apple and Tesla suffered heavy losses.

Sector heavyweights Wisetech sank 2.6 per cent to $93.16 and Xero dropped 0.9 per cent to $133.30.

Bitcoin briefly traded as high as $69,202 overnight, setting a record high for the world’s most-traded cryptocurrency.

Gemma Dale, director of investor behaviour at NAB Trade, said the rally in gold stocks and Bitcoin might still push higher.

“(There’s) perhaps two different generations with a view on what a flight to safety looks like … I think there’s potential for those to run a little bit further,” Ms Dale said.

Embattled airline Qantas was hit with another controversy after the carrier was found to have breached work, health and safety laws in dealings with former employee Theo Seremetidis. Picture: NCA NewsWire / Gaye Gerard

In corporate news, embattled money manager Magellan Financial Group surged 7.9 per cent to $9.21 after it reported total funds under management had increased to $37.2bn in February, up from $36.3bn the month prior, however there were net outflows of $20m.

Qantas Airways shed 2.2 per cent to $5.01 after the national carrier was hit with a $250,000 penalty after it was found guilty of breaching workplace health and safety laws and discriminatory conduct when it stood down a worker who raised Covid-19 concerns.

Shares in luxury online retailer Cettire plunged 14.4 per cent to $3.99 after an investigation published in The Australian Financial Review found the company withheld duties to be paid to Australian customs.

Originally published as Aussie share market edges higher as financials rally