ASX closes 1% higher as energy continues to rise

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Investors appeared more relaxed in the face of global economic uncertainties on Thursday, with the local stock market advancing 1% as tech and energy stocks rallied.

The S & P / ASX 200 ended the session at 7370.2, having started the week at 7390.4.

Blue-chip stocks followed their Wall Street counterparts higher, as stocks reacted to allaying fears over Chinese real estate giant Evergrande and gained more certainty over retrenchment after the meeting. day from the Federal Reserve.

The three major US stock indexes hit record closing highs on Friday.Credit:

Both of these issues have rocked global markets over the past week, but investors had a clearer idea of ​​the way ahead on Thursday. The Fed has indicated that it could start raising the benchmark interest rate from next year, while it will also look to slow its bond purchases soon if the economy continues to strengthen.

Real estate and iron ore analysts are keeping a close watch on China’s second-largest real estate developer, Evergrande, as interest payments fall due for the construction giant, but the company confirmed during the last day she had negotiated payments with certain sectors.

Australian tech stocks followed their US peers higher, with the sector posting gains of 3% for the session. Afterpay gained 4.2% to $ 131.54, while Xero followed with a 2.8% increase to $ 153.07.

Energy and mining stocks followed, with iron ore producers jumping on a rally in iron ore prices. The energy sector gained 2.8% for the day while materials were ahead by 0.2%.

Duncan Hogg, head of mergers and acquisitions in Oceania at EY, said the local market enjoys greater certainty about Evergrande’s position and the Chinese real estate sector, as investors continue to seek gains after the pandemic .

“They just look forward to where the growth is coming from. M&A activity is at an all time high, across a number of significant transactions, ”he said.

There were more developments in a busy week of takeover news, as energy infrastructure firm APA Group filed a request with the takeover panel asking its takeover target. controls AusNet to drop an exclusive due diligence process with rival Brookfield and give it access to AusNet’s books.

APA shares ended the day up 2.1% to $ 8.73, while AusNet was 2.4% higher to $ 2.58 – above suitor Brookfield’s bid for its actions.

Healthcare stocks were among the worst performers in the session, with drug developer Telix losing as much as 15% before closing down 5.6% to $ 6.42 following news that the US regulator had delayed the decision to approve its flagship product for three months.


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