AAP Finance

Australian share market hits two-week high

By AAP Newswire

Oct 5, 2022

ASX — Tech stocks were up by more than three per cent at midday, while consumer staples were a bit down. -AAP Image

The Australian share market has hit a two-week high as its rally enters a second day on hopes the global interest rate tightening cycle is finally easing.

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At noon on Wednesday the benchmark S&P/ASX200 index was up 106.1 points, or 1.58 per cent, to 6804.5, while the broader All Ordinaries had added 112.6 points, or 1.6 per cent, to 7017.9.

Every sector was in the green, with tech stocks the biggest gainer, rising 3.0 per cent. Afterpay owner Block was up 8.2 per cent and Wisetech Global had added 4.3 per cent.

In the heavyweight financial sector, all the big retail banks were up by at least two per cent, led by Westpac's 2.9 per cent gain to $22.04.

Lithium players were mostly in the red following Tuesday's strong gains, with Pilbara down by 2.4 per cent and Allkem falling 2.6 per cent.

But elsewhere in the mining sector all was well. Fortescue Metals was up 1.8 per cent to $17.52, BHP had risen 0.7 per cent to $40.36 and Rio Tinto had added 1.1 per cent to a two-month high of $97.035.

The energy sector was mixed, with coalminers Whitehaven and New Hope down by 2.4 per cent and 3.5 per cent, respectively, on likely profit-taking following all-time highs on Tuesday.

Woodside was up 1.4 per cent to $34.09 and Santos added 2.0 per cent to $7.62 as OPEC+ member states began meeting in Vienna to discuss a big production cut.

The two consumer sectors were going in different directions, with defensive staples up just 0.2 per cent while discretionaries had collectively risen 2.5 per cent.

Woolworths was down 0.5 per cent to $33.81 while Wesfarmers rose 2.5 per cent to $45.52.

Realestate.com.au owner REA Group was up 7.5 per cent to $129.69 and Domain added 6.3 per cent to $3.57, a day after the Reserve Bank's smaller-than-expected rate hike signalled a possible easing of the tightening cycle.

Property trusts were collectively up 1.9 per cent with warehouse owner Goodman Group adding 4.0 per cent to $17.40.

Across the ditch, however, the Reserve Bank of New Zealand opted not to follow the RBA's lead on rates.

The New Zealand central bank hiked rates to 3.5 per cent, in line with expectations, its fifth consecutive 50 basis point rise.

The Australian dollar meanwhile was buying 65.16 US cents, from 65.31 US cents at Monday's close.