Australia shares snap three-day losing streak on boost from financials

Altium

15/02/2024 06:33

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      Benchmark index snaps three-day losing streak
    

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      Altium top gainer on the benchmark 
    

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      Weaker-than-expected January domestic employment data
    

  
 (Updates to close)
    By Sherin Sunny
       Feb 15 (Reuters) - Australian shares snapped a three-day
losing streak on Thursday, helped by gains in heavyweight
banking stocks, while investors digested weaker-than-expected
domestic employment data and a slew of corporate earnings. 
    The S&P/ASX 200 index  .AXJO  closed 0.8% higher at
7,605.70. The benchmark had slipped 0.7% on Wednesday.
    Data showed Australian employment was surprisingly weak in
January, while the jobless rate climbed to a two-year high,
raising the possibility that the labour market might be cooling
faster than previously thought. 
    "The unexpectedly weak employment data today reflects the
lagging impact of the RBA's (Reserve Bank of Australia)
tightening efforts and a growing cautiousness from the business
perspective," said Hebe Chen, a market analyst at IG. 
    "Before the next RBA monetary meeting, January's monthly
inflation report would carry more weight in assessing the
outlook for inflation development in Australia", added Chen. 
    Meanwhile, a slew of domestic corporate earnings took centre
stage on Thursday, with Whitehaven Coal  WHC.AX  and South32
 S32.AX  posting lower profit, while BHP  BHP.AX  flagged $5.7
billion of impairments on the Samarco dam failure and its
Western Australia nickel operations.
    Origin Energy  ORG.AX  closed 2.5% higher, after the energy
retailer posted strong underlying profit and forecast higher
operating earnings from its energy markets division. 
   Financial stocks  .AXFJ  ended about 1% higher. The "Big
Four" banks gained between 0.1% and 1.5%. 
    In contrast, mining stocks  .AXMM  retreated 0.9% to their
lowest since Nov. 13, while energy stocks  .AXEJ  fell 2.1%,
with shares of Woodside  WDS.AX  declining 3%.
    Woodside said it expected to recognise non-cash post
tax-asset impairments of around $1.5 billion in its fiscal 2023
earnings.
    Tech stocks  .AXIJ  closed 6.8% higher hitting their highest
level since early January, 2022. 
        Altium's  ALU.AX  shares hit a record high on receiving
a $5.9 billion buyout offer from Japanese chipmaker Renesas
Electronics  6723.T .
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  closed 0.2%
lower at 11,640.04. 

 (Reporting by Sherin Sunny in Bengaluru; Editing by Sonia
Cheema)
 ((Sherin.Sunny@thomsonreuters.com))
 
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