Australian shares reached a record high on Thursday afternoon, as market participants grew increasingly optimistic about the prospect of an upcoming interest rate cut by the Reserve Bank of Australia (RBA).
The S&P/ASX 200 closed up by 46.7 points, or 0.6% to finish at 8,493.7, with all 11 sectors ending the day in the green.
Energy stocks emerged as the best-performing sector, continuing to bounce back from a 2.1% decline on Tuesday. Woodside gained 0.7%, Santos climbed 0.9%, and Viva Energy rose 2%.
The Federal Reserve's decision to hold its benchmark interest rate steady at its January meeting further contributed to the positive sentiment. Fed Chairman Jerome Powell signalled that the central bank would hold off on any rate cuts until there was further progress on inflation.
Consumer discretionary stocks were buoyed by hopes for an interest rate cut, with Aristocrat Leisure advancing 3.7%, JB HiFi up 0.6%, and Wesfarmers adding 1.2%.
In the tech sector, results were mixed. Block increased by 2.9%, Appen fell by 5%, while Wisetech managed a modest 0.7% gain.
Karoon Energy emerged as the index's top performer, rising 7.7% following the announcement of an on-market share buyback worth $75 million, aimed at boosting the company's underperforming share price.
However, not all companies fared well. Zipco saw a sharp decline of 25.4% after reporting disappointing quarterly results.
Magellan shares dropped 5.2% following the news of the departure of Gerald Stack, the company's long-serving infrastructure head.
On the bond markets, 10-year and 2-year rates were steady at 4.384% and 3.814%, respectively.
