The Australian share market closed slightly higher on Wednesday, with the S&P/ASX 200 Index rising 0.1%, or 10.5 points, to finish at 8187.4.
Gains in consumer and technology stocks were strong enough to offset declines in the commodity sectors, which were weighed down by falling oil and iron ore prices.
The consumer discretionary sector led the gains, rising 1%. Wesfarmers increased 0.9% to $69.55, while Aristocrat Leisure climbed 2% to $58.89.
The information technology sector was another strong performer, gaining 1.4%. WiseTech and Xero both added 1.5%, closing at $134.10 and $147.38, respectively.
The utilities sector also posted solid gains, led by APA Group, which surged 2.6% to $7.59. The rise came after the Australian Energy Regulator’s preliminary decision to maintain the light regulation regime on APA’s South West Queensland Pipeline, avoiding full price regulation.
Despite the positive momentum, overall market gains were limited by weakness in the commodity sectors. The energy sector dropped 2.5%, as oil prices fell more than 4% overnight. This was partly due to China’s stimulus plans, which fell short of expectations. Investors also took profits after last week’s surge in oil prices following Iran's attacks on Israel. Woodside Energy lost 3% to $25.56, while Santos dropped 1.8% to $7.12.
The mining sector was also hit hard, mirroring the decline in iron ore prices. BHP and Rio Tinto fell 1.2% to $43.28 and 2.3% to $118.24, respectively. Iron ore prices slumped more than 5% overnight, now trading at around $US104 a tonne, down from $US114 before China’s latest fiscal policy announcement.
Mineral Resources was the worst performer on the ASX 200, tumbling 6.4% to $47.94 after JPMorgan cut its lithium price forecasts and downgraded the stock.
Investor attention was also focused on the Reserve Bank of New Zealand, which cut its cash rate by 50 basis points to 4.75%, aligning with market expectations.
In bond markets, Australian 10-year yields remained steady at 4.19%, while 2-year yields were at 3.801%.