ASX closes higher after weak GDP figures
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The news: The Australian sharemarket closed higher as investors reacted to weak GDP figures released today that added to the case against a rate hike.
The numbers: The benchmark ASX200 finished 0.41% higher to end at 7,769, with eight out of 11 sectors finishing in green.
The best-performing sector was telecommunication services, up 2.01%, followed by healthcare (1.69%) and consumer staples (1.57%). Seek rose 5.25% following its announcement that it would divest from its Latin American assets for $128 million.
Treasury Wine Estates, up 5.27%, was the best performer across the ASX 200, after reaffirming its full-year earnings guidance.
Meanwhile, Equity Trustees gained 1.42% despite being given a fine by the prudential regulator for failing to meet data reporting obligations.
The worst-performing sector was materials, down 1.11%, followed by energy (-0.91%), and IT (-0.61%). Copper miner Sandfire lost 6.07% and was the worst performer across the ASX 200 after an investigation found operations from its copper mine had disturbed Indigenous artefact scatters, which the company acknowledged was “entirely avoidable”.
Xero ended 4.85% lower after it priced its convertible notes offer at $1.39 billion and said the proceeds would be partially used for potential acquisitions and strategic investments.
Fletcher Building ended 2.71% lower after Moody’s downgraded its credit rating to Baa3 with a negative outlook.
Medibank shares fell 1.07% after it was announced that the privacy regulator is taking the company to court over its data breach in October 2022.
The Australian dollar is higher, buying 66.56 US cents.
The context: Overnight will see the Bank of Canada make its next monetary decision, which could be a rate cut.
Thursday will also see the European Central Bank make its next interest rate decision, which is expected to be a cut.
