Travel News

Australian sharemarket bounces between modest gains and losses, energy ‘most improved’ for second straight day


The Australian sharemarket closed lower after a choppy trading session, with energy the standout due to higher oil prices, while tech stocks weighed.

The benchmark S&P/ASX200 index slipped 11.2 points or 0.15 per cent to 7399.4, while the All Ordinaries Index gave up 16.2 points or 0.21 per cent to 7725.5.


OMG chief executive Ivan Tchourilov said various forces pushed the market in different directions.


“Overall, the All Ords and 200 index have settled. Statistically, they turn bullish towards the beginning of December,” he said.

“The 200, traded via XJO options, has been trading in a very tight range since October, so the market appears to be waiting for a clear direction before stepping up a gear.”

The energy sector was the “most improved” for the second straight day, CommSec analyst Tom Piotrowski said.

Woodside lifted 1.6 per cent to $22.81, Beach Energy rose 2.4 per cent to $1.28, Origin added 1.17 per cent to $5.17, Santos gained 2.23 per cent to $6.89 and Oil Search firmed 0.7 per cent to $4.23.

“This is an interesting outcome because overnight it was announced that we would see a co-ordinated release of oil from strategic reserves from the US, India, Japan, South Korea and the UK,” Mr Piotrowski said.

“We had the oil price end higher, notwithstanding that, because the markets were a little bit underwhelmed by what these numbers actually break down to mean in the final analysis.

“What’s uncertain is the time frame in which it will happen.

“The most important outcome now will be the December 2 meeting of OPEC and allied producers to see what they do because they could well defer any production increases.”

Mr Tchourilov said micro caps, tech and gold all slipped, caused by a strengthening US dollar and hawkish reserve bank activity.

“The New Zealand reserve bank hiked rates again, putting them at the forefront of developed economies to stifle inflation,” he said.

The worst performing tech stock among the biggest 200 Aussie companies was Technology One, which slumped 8.6 per cent to $11.47.

The company backtracked 2.86 per cent on Tuesday despite booking a 15 per cent rise in full-year net profit.

Among gold producers, Ramelius declined 2.66 per cent to $1.65, Evolution Mining retreated 1.22 per cent to $4.04, Gold Road eased 0.97 per cent to $1.53, St Barbara gave up 2.07 per cent to $1.42 and Chalice shed 1.74 per cent to $9.59 after holding its annual general meeting, which marked the retirement of chairman Tim Goyder.

Mr Tchourilov said banks didn’t move much from current depressed valuations.

ANZ rose 0.88 per cent to $27.51, Commonwealth Bank appreciated 0.37 per cent to $97.18, National Australia Bank inched two cents lower to $28.45 and Westpac slipped one cent to $21.80.

Pinnacle Investment Management was a poor performer, declining 5.6 per cent to $16.52 after announcing a placement and sell-down had been completed at a price of $16.70 per share, as it takes a 25 per cent stake in private equity group Five V Capital.

Mr Tchourilov said iron ore miners settled after an intense week on rising demand expectations.

Rio Tinto eased six cents to $95.07, BHP put on 0.5 per cent to $38.24 and Tuesday’s top performing major stock, Fortescue, increased 1.27 per cent to $17.57.

Camera IconHarvey Norman’s revenue has fallen back from the giddy heights seen earlier in the pandemic, when stimulus-boosted shoppers stocked up on appliances and office supplies. Richard Walker Credit: News Corp Australia

Harvey Norman provided a trading update showing an 8.8 per cent fall in sales revenue over the four months to November 21, sending its shares 1.73 per cent lower to $5.10.

Mr Tchourilov said there were big volumes of trades in cardiovascular medical device company EBR Systems, which made its ASX debut, listing at $1.08 and closing 4.63 per cent lower at $1.03.

“Traded value was close to $10m, which isn’t bad on opening day for a company valued at around $300m total market cap,” he said.

“The price was bouncing around before settling.

“Biotech has been a hot space for the ASX in recent years.

“Given that EBR isn’t expecting the Food and Drug Administration to approve their key product until the second half of 2023, it’ll be interesting to see how speculation plays with the market price.

“More and more companies are seeing high levels of capitalisation despite muted revenues.

“Considering the company has no commercialised product to sell just yet, speculation is all we have to go by.”

The Aussie dollar was fetching 72.19 US cents, 53.9 British pence and 64.19 Euro cents in afternoon trade.

Latest Travel News


Travel Guides

Travel Guides Buzz has breaking travel news, travel hotels, America travel guides, travel photos, latest travel news, Asia travel guides, Europe travel guides, Australia travel guides and all the trending buzz you’ll want to share with your friends. Copyright Travel Guides Buzz.

Related Articles

Back to top button