Australian market gains after RBA rate hike

The Australian equity market ended the session slightly higher on Tuesday July 5, 2022, extending the gains of the previous session as the Reserve Bank of Australia (RBA) raised interest rates by 50 basis points to 1.35 % today as expected and offering a less hawkish view than some investors had hoped.

The country’s central bank raised its key rate for a third consecutive month to 1.35% and announced further tightening as it struggles to contain soaring inflation.

At the close, the benchmark S&P/ASX200 index rose 16.77 points, or 0.25%, to 6,629.33. The broader All Ordinaries index gained 21.15 points, or 0.31%, to 6,818.08.

The best performing stocks in this index were LIFE360 INC. and REGIS RESOURCES, up 11.3% and 10.7% respectively. The worst performers in this index were UNIBAIL-RODAMCO-WESTFIELD and MIRVAC GROUP, down 3.9% and 2.9% respectively.

In total, 7 of the 11 sectors finished higher with the S&P/ASX 200 index.

Energy was the best performing sector, up +2.16%, followed by Information Technology (up 1.7%), Healthcare (up 1.2%) and telecommunications services (up 0.6%), while real estate was the worst performing sector, down 1.4%, followed by industrials (-0.6%).

Shares in the energy sector rose amid worries about the tight supply of the commodity and fears of a looming global recession. Sector majors Woodside Energy Group and Ampol rose 3.8% and 1.1% respectively.

Gold stocks rose on rising gold prices. Sector heavyweights Northern Star Resources and Newcrest Mining rose 2.4% and 1.35% respectively.

ECONOMIC NEWS: The Reserve Bank of Australia raised its benchmark rate by 50 basis points to 1.35%, marking 125 basis points of hikes since May and the fastest series of moves since 1994. The Board plans to take further further steps in the process of normalizing monetary conditions in Australia over the coming months,” RBA Governor Philip Lowe said in a statement.

CURRENCY NEWS: The Australian Dollar fell following the announcement of the RBA’s decision and last traded at $0.6854.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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