The Australian sharemarket closed higher on Wednesday, as investors tracked global gains and positioned ahead of the Federal Reserve’s interest rate decision amid elevated geopolitical uncertainty.
The S&P/ASX 200 rose 26.3 points, or 0.3%, to finish at 8,640.6, with 10 of the 11 sectors ending the session in positive territory.
Following Tuesday’s rate increase by the Reserve Bank of Australia (RBA), investor attention has shifted to the outcome of the Fed’s policy meeting.
While rates are widely expected to remain unchanged, markets are focused on how policymakers will balance inflation risks against slowing global growth, particularly in light of the ongoing Iran conflict.
Rate-sensitive technology stocks led sector gains. Xero gained 2.3%, TechnologyOne lifted 1.1%, NEXTDC added 3.6%, and Life360 gained 2.9%, while WiseTech Global slipped 1.4%.
Property stocks also finished higher, with Goodman Group up 2.1%, Charter Hall Group gaining 0.7%, and Mirvac Group adding 0.3%.
The Materials sector closed higher overall, although performances were mixed across major miners. BHP gained 0.4% after announcing the appointment of Brandon Craig as chief executive from 1 July. Rio Tinto added 0.8%, while Fortescue declined 1.3%.
Gold miners were also mixed as bullion traded below $5,000 per ounce. Northern Star Resources rose 1.4%, while Evolution Mining and Newmont moved 0.6% and 0.7% lower, respectively.
Energy stocks remained supported despite a modest pullback in oil prices.
Woodside Energy ticked up 0.1% after confirming the appointment of Liz Westcott as chief executive and managing director, formalising her role after serving in an acting capacity since December.
Santos added 0.8%, Ampol lifted 2.4%, Beach Energy gained 2.5%, and Viva Energy advanced 3.9%.
Banking stocks delivered a mixed performance following the RBA’s rate hike on Tuesday, with Commonwealth Bank adding 0.6%, National Australia Bank down 0.5%, Westpac ticking up 0.1%, and ANZ Group finishing 1.1% lower.
In corporate news, Sims Limited surged 9.9% after forecasting full-year underlying earnings before interest and tax of between $350 million and $400 million, a 114% increase on last year’s $174.9 million.
Humm Group rallied 6.1% after the Takeovers Panel declared “unacceptable circumstances” relating to misleading statements to investors regarding a proposed takeover by Credit Corp.
Meanwhile, Novonix dropped 3.6% after receiving a warning from Nasdaq over non-compliance with its minimum closing price requirement of US$1 for at least 10 consecutive days. The company has 180 days to regain compliance.
On the bond markets, yields were little changed, with the 10-year rate holding at 4.9% and the 2-year yield at 4.51%.
