Australian share market rises after 3 days of losses

Derek Rose | March 15, 2023

The local share market was in the green at midday after three days of sharp losses following the implosion of Silicon Valley Bank in the United States.

At noon AEDT on Wednesday, the S&P/ASX200 was up 20.4 points, or 0.29 per cent, to 7,028.9. The benchmark index had been up as many as 57.6 points, or 0.8 per cent, an hour earlier.

The broader All Ordinaries at noon was up 23.5 points, or 0.33 per cent, to 7,224.6.

The gains came after a broad-based rally on Wall Street, where the S&P500 index lifted 1.7 per cent on signs US inflation is slowing – although not by as much as expected.

The US inflation annual rate in February was six per cent higher than a year ago, but down from an annual rise of 6.4 per cent in January, the US Bureau of Labor Statistics reported overnight.

ANZ researchers Brian Martin and Daniel Hynes said in a note that the “figures were largely as expected but confirm the Fed still has work to do to get inflation under control,” predicting a 25 basis point US rate hike next week.

Eight of the ASX’s 11 official sectors were up at midday, with energy and consumer discretionary shares down and consumer staples flat.

Tech stocks were the biggest gainers, climbing 1.9 per cent.

The financial sector had risen 0.4 per cent, with three of the four big retail banks in the green. ANZ was up 0.9 per cent, Westpac had added 0.7 per cent and NAB had gained 0.5 per cent. CBA was the outlier, down 0.5 per cent to $94.83. 

Woolworths was down 0.9 per cent, as was Kmart owner Wesfarmers.

The heavyweight mining sector had grown by 0.5 per cent, with BHP up 0.8 per cent to $45.37, Fortescue climbing 1.2 per cent to $21.79 and Rio Tinto advancing 1.6 per cent to $119.37.

Goldminers were down as the price of the precious metal ebbed amid the risk-on environment. Newcrest was down 0.4 per cent and Northern Star fell 1.7 per cent after announcing operations at its Pogo goldmine in Alaska would have to be halted for six weeks due to a damaged ball mill motor.

29 Metals was down 15.5 per cent to an all-time low of $1.175 after announcing that weather-related damage to its Capricorn Copper mine in Mount Isa Shire, Queensland had been more severe than first thought. 

Some 500mm of rain fell over the region from March 6 to 10, the highest weekly rainfall ever recorded in the region, and access to the site was only recently restored. Interruptions to operations are expected to take three to four months, the company said.