ASX 200 LIVE: Key Market Movements and Insights
Market Rebound and Sector Highlights
The sharemarket rebounded on Tuesday as Commonwealth Bank and Macquarie scaled all-time highs and energy companies shrugged off concerns about weakening Chinese demand for oil. The benchmark S&P/ASX 200 advanced 0.3 percent, or 23.8 points, to 8011.9, buoyed by a rally on Wall Street as investors stepped back in after last week’s heavy sell-off.
Sector Performances
- The local gauge is now just 137 points shy of a record 8148.7 set in August.
- Ten of the ASX 200’s 11 sectors finished higher, led by the banking and technology sectors.
Banking Sector Insights
Financial stocks were well-bid thanks to another wave of records by the big lenders. Commonwealth Bank rose 0.6 percent to $143.77 after hitting an all-time high of $145.24 earlier in the session. Year-to-date, the stock has jumped 28 percent. Similarly, Macquarie lifted 1.6 percent to $227.36 after climbing to a fresh peak of $228.5 intraday. Both CBA and Macquarie have been regularly resetting historical highs since late August.
On the regulatory side, the Australian Prudential Regulation Authority is planning to phase out bank hybrid securities, aiming to replace them with cheaper and more reliable capital forms.
Energy Sector Movements
Energy stocks pushed higher on Tuesday despite a drop in the Brent price below $US72 a barrel due to weak Chinese demand and persistent global oversupply. Woodside rallied 0.8 percent to $23.99 and Santos gained 0.6 percent to $6.92.
Commodity Price Challenges
- Materials companies reversed gains late in the session after weak import data from China.
- Iron ore prices faced a decline, driven by falling steel prices and a gloomy demand outlook.
BHP finished the session down 0.3 percent to $38.66 and Fortescue dropped 2 percent to $15.89.
“The struggles in China’s economy continue,” said Josh Gilbert, an analyst at eToro. “If new measures don’t come, we may not have seen the bottom in iron ore prices, indicating potential further distress for miners.”
Company Updates
In other news, family app Life360 tumbled 8.1 percent to $17.03 due to a director selling shares worth around $US3.7 million. Likewise, Steadfast Group faced a sell-off of more than 10 percent to $5.32 following claims of misleading clients regarding insurance policies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.