The native share market has lastly gained floor after days of heavy losses, though the reduction rally misplaced steam within the afternoon.
After being up as a lot as 1.3 per cent round lunchtime, the benchmark S&P/ASX200 index pale late within the afternoon to shut Tuesday up 56.9 factors, or 0.82 per cent, to six,955.4.
The All Ordinaries had gained 57.1 factors, or 0.81 per cent, to 7,142.2.
“I think markets are still a bit nervous – the Credit Suisse situation is I think still going to receive attention,” CommSec market analyst Steven Daghlian advised AAP.
It would have been uglier if the banking large wasn’t bailed out by way of its buy by UBS, however there are nonetheless issues significantly concerning its bonds, Mr Daghlian stated.
“But also … markets are on edge and waiting to see what happens with other US banks. We’ve already had a couple of failures obviously.
“It’s form of a disaster of confidence, if you’ll, and we’ll simply should see how markets reply within the days forward, as a result of we’re form of on the mercy of what occurs abroad for the time being, right here in Australia.”
Domestically the Reserve Bank confirmed with the release of board minutes that it considered pausing rate hikes at its last meeting, on March 7.
Weekly consumer confidence figures released on Tuesday also showed that domestic sentiment was close to its lowest levels since the COVID-19 outbreak.
Nine of the ASX’s 11 sectors finished higher, with financials the biggest gainer as all of the big banks rebounding.
Westpac gained 1.4 per cent to $21.42, ANZ added 1.2 per cent to $22.75, and NAB both finished up 0.5 per cent, to $28.01 and $96.52, respectively.
After the market closed Fitch Ratings re-affirmed its a+ outlook on all four of the big banks.
Among big companies, New Hope was the standout of the day, soaring 8.6 per cent to $5.32 as the coalminer beat expectations by announcing its half-year profit had doubled to $669 million. It also raised its dividend by one-third.
“It’s probably not stunning – it is the truth that coal costs are a lot greater than there have been, say, 12 months in the past,” Mr Daghlian said.
The average realised price for coal for the six months to January 31 was up 142 per cent, compared to a year earlier.
The heavyweight mining sector gained 1.0 per cent, with BHP rising 1.3 per cent to $43.53, Fortescue Metals dipping 0.1 per cent to $20.77 and Rio Tinto adding 1.0 per cent to $115.10.
Mincor Resources soared 42.3 per cent to $1.48 after Andrew Forrest’s private Wyloo Metals offered to acquire the nickel miner for $760 million, or $1.40 per share. Wyloo already owns nearly 20 per cent of the Perth-based company, which is still ramping up its mining operations in the WA.
“We are in a world the place the adoption of electrical autos and industrial decarbonisation continues to extend demand for high-grade nickel sulphides,” said managing director and CEO Gabrielle Iwanow, predicting that the value of Mincor’s “extremely strategic” would only continue to grow.
Junior explorer Galileo Mining also posted double-digit gains, rising 29.6 per cent to 70c after announcing promising assays from drilling at its Callisto palladium-nickel discovery, at its Norseman project in WA.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 56.9 points, or 0.82 per cent, at 6,955.4.
* The broader All Ordinaries gained 57.1 points, or 0.81 per cent, to 7,142.2.
CURRENCY SNAPSHOT:
One Australian greenback buys:
* 66.90 US cents, from 66.74 US cents at Monday’s ASX close
* 87.82 Japanese yen, from 87.68 Japanese yen
* 62.45 Euro cents, from 62.61 Euro cents
* 54.58 British pence, from 54.83 pence
* 107.66 NZ cents, from 106.83 NZ cents
Source: www.perthnow.com.au
