Yahoo Finance ASX claws back points after rocky start
The Aussie share market continued to claw back some much needed points after a shocking start to the week saw the ASX suffer off the backlash of the Japanese market.
The S & P/ASX200 gained 19.2 points, or 0.25 per cent, to finish on 7,699.8 at the close on Wednesday.
The All Ordinaries also rose 0.29 per cent to finish at 7913.1 points.
Nine of 11 sectors were in the green, with property gaining 1.3 per cent.
Energy also managed to rebound at 1.1 per cent, while miners and financials lost ground as the market continues to grapple with the hefty losses on Monday and the RBA’s cash rate announcement leaving rates on hold at 4.35 per cent on Tuesday.
The Index has lost 4.85 per cent over the last five days, but has gained 1.44 per cent over the last year to date despite the chaotic start to the week.
The top performing stock was Arcadium Lithium PLC with a hike of 6.98 per cent at the close.
It comes as the confirmed it would pause expansion plans and review lithium operations in Australia.
“Despite where lithium market prices are today, we still see a strong long-term growth trajectory for lithium demand and expect a return to healthier market fundamentals over time,” Arcadium Lithium president and chief executive officer Paul Graves said.
“However, the market is clearly indicating that the industry does not need to add supply at the same pace as previously expected. We have therefore decided to defer investment in two of our four current expansion projects.
“While we remain fully committed to developing our highly attractive portfolio of expansion opportunities, each of which is expected to be among the lowest cost lithium operations globally when completed, we will seek to do so on a timeline that is supported by both the market and our customers.”
Pilbara Minerals Ltd also fared well gaining 5.71 per cent.
Meanwhile, Rio Tinto dropped 1.4 per cent as iron ore futures fell about 1 per cent.
In banking, NAB, Westpac and Commonwealth Bank down 0.9 per cent, 0.7 per cent and 0.3 per cent respectively.
ANZ managed to see some positives, gaining 0.2 per cent.
The Aussie dollar gained 0.3 per cent to US65.36 cents at the time of publication.
However, Saxo Head of FX Strategy, Charu Chanana, said the Aussie dollar will be influenced by international circumstances, including the uncertainty in the US and the pains felt on the Japanese stock market.
“Global risk sentiment has shifted significantly between last week and the RBA’s meeting,” Ms Chanana said.
“There has been a sharp sell-off in global equity markets amid increasing concerns about a US recession.
“This has accelerated calls for the US Federal Reserve to deliver rate cuts sooner, potentially even before the September meeting, or to go big with a 50 basis point cut in September.
“Given the shift in the macro backdrop, the RBA’s lack of guidance on its rate cut plans at the August meeting seems to be a misstep.”
The Japanese yen fell about 2 per cent.
It comes as Asian shares rallied after the Bank of Japan’s deputy governor said it won’t raise interest rates if markets are unstable.
