Australian market bounces back after midweek dip

The local share market has bounced back from Wednesday's pullback after a rise in global commodity prices gave multiple sectors a boost.

At Thursday’s close, the benchmark S&P/ASX200 index was up 35 points, or 0.45 per cent, to 7,817.

The broader All Ordinaries was up 39 points, or 0.5 per cent, to 8,072.5.

All of the ASX's 11 categories finished higher, with information technology the biggest mover, up 1.2 per cent, and real estate stocks were also strong.

The US Federal Reserve is holding interest rates in place until clearer signs of lower inflation, which are expected to come later this year, chairman Jerome Powell said in a speech.

If the Federal Reserve does cut interest rates the global real estate market could experience major growth later this year, with the robust global economy creating a boost in demand for housing.

The prices of oil and gold rose overnight, following increased geopolitical tensions after Israel allegedly bombed Iran’s consulate building in Syria and Ukraine bombed a Russian oil refinery.

The price of oil rose by 0.5 per cent and gold lifted by 1.5 per cent to an all-time high of $2294.99 an ounce because of demand for safe-haven assets during a turbulent geopolitical climate.

The rising cost of oil gave the energy sector a boost.

Industry leader Woodside remained flat, but Beach Energy was up 3.5 per cent and Santos grew 0.6 per cent. 

Gold’s all-time high price was a boon to miners of the precious metal, with WA1 Resources up by 14 per cent and Kingsgate 10 per cent. 

Larger gold miners such as Evolution Mining and Northern Star had boosts of 2 per cent and 1 per cent respectively.

Westgold Resources picked up after downgrading its production guidance because of flooding on Wednesday, with the gold miner finishing 4 per cent higher.

Despite growth in the materials sector, the big three miners were all down. BHP dropped 0.3 per cent, Rio Tinto slipped 1 per cent and Fortescue 0.95 per cent.

The big four banks bounced back after a lacklustre Wednesday.

Westpac and ANZ were the biggest movers at 0.8 per cent, CBA was up 0.5 per cent and NAB was down 0.1 per cent. 

S&P Global Ratings upgraded Westpac’s credit profile to an A+ after concluding sector-wide risks have reduced. 

The financial sector was up by 0.4 per cent.

Treasury Wine Estate has shown continued growth - up 1.4 per cent - since China dropped its wine tariffs on Tuesday, despite the consumer staples sector otherwise remaining flat.

Suncorp was up 0.1 per cent after announcing the sale of its New Zealand-based subsidiary Asteron Life to Resolution Life for NZ$410 million (AU$376 million).

The insurance provider will continue to operate its Suncorp businesses in New Zealand. 

The Australian dollar has continued its slow ascent, buying 65.9 US cents, from 65.2 US cents at Wednesday's ASX close.


* The benchmark S&P/ASX200 index on Thursday finished 35 points higher at 7,817, an increase of 0.45 per cent.

* The broader All Ordinaries rose 38.9 points, or 0.5 per cent, to 8,072.5.


One Australian dollar buys:

* 65.91 US cents, from 65.20 US cents at Wednesday's ASX close

* 99.95 Japanese yen, from 98.81 yen

* 60.77 Euro cents, from 60.49 Euro cents

* 52.08 British pence, from 51.83 pence

* 109.23 NZ cents, from 109.13 NZ cents

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store