‘Rollercoaster’: ASX moves on GDP figures
Australian shares endured a rollercoaster session as GDP figures sparked fears that economic resilience could keep interest rates elevated longer than hoped.
The Australian sharemarket seesawed on Wednesday with the good news for the economy once again seen as bad news for stocks.
On a mixed day of trading, the benchmark ASX 200 added 15.50 points or 0.18 per cent to 8,595.20.
The broader All Ordinaries also finished in the green up 16.70 points or 0.19 per cent to 8,894.20.
Government bond yields and the Australian dollar reversed throughout the days trading before the money market priced in a 21 basis point rise by November 2026.
Australia’s dollar jumped and at the close of trading was buying 65.82 US cents.
Overall eight of the 11 sectors finished higher although the sharemarket swung post the announcement of Wednesday’s gross domestic product figures.
Utilities outperformed on Wednesday with Origin Energy up 0.17 per cent to $11.72, while APA group added 1.20 per cent to $9.29 and AGL jumped 3 per cent to $9.60.
Energy shares also rose on rising oil and coal prices with Santos up 0.56 per cent to $6.55, Ampol added 1.72 per cent to $32, and Yancoal closed 2.16 per cent higher at $5.67.
The big four banks had a mixed trading day with Commonwealth Bank slipping 0.12 per cent to $152.05, while Westpac closed 0.75 per cent higher to $37.40, NAB added 0.65 per cent to $40.42 and ANZ outperformed, up 1.49 per cent to $34.73.
Figures released by the Australian Bureau of Statistics show gross domestic product rose 0.4 per cent over the September quarter.
The yearly growth rate now comes in at 2.1 per cent.
Morningstar Australia equity market strategist Lochlan Halloway labelled Wednesday’s trading as a “bit of a rollercoaster to end up pretty flat”.
“The initial reaction to the GDP figures was quite positive from the market as it looked like on first glance it was slower than expected,” he told NewsWire.
“We are in that paradigm at the moment where good economic news is seen as bad news for the market as it could mean rates stay higher or even go up.”
Mr Halloway said once investors digested the figures the market traded lower.
KPMG chief economist Brendan Rynne says Australia’s economy has moved from second to third gear, but was still well off top speed.
“Household consumption as a proportion of GDP has stabilised to near pre-Covid levels, while government consumption continues to rise and now represents its highest recurrent spending level since September 1959, when the ABS national accounts data first began,” he said.
In company news, Block shares fell 5.96 per cent to $92.70, despite a bump in transactions during Black Friday as the US attorneys general offices expressed concerns about the broader buy now pay later sector’s impact on consumers.
Shares in Betmaker leapt 12.90 per cent to $0.18 with the business telling the market it had stronger digital wagering activity as well as a new agreement with US-based Penn Entertainment.
Originally published as ‘Rollercoaster’: ASX moves on GDP figures
