ASX higher ahead of RBA meeting
Make us a preferred source
Make us a preferred source on Google
The news: The Australian sharemarket has started the week higher ahead of the Reserve Bank of Australia’s next interest rate decision on Tuesday.
The numbers: The benchmark ASX 200 finished up 0.7% to 7,682.4, with eight out of 11 sectors finishing in green.
The best performing sectors were interest rate sensitive sectors AREITs (1.73%) and utilities (1.24%). Goodman Group led gains in the ARIETs sector, up 4.02%, and was one of the best performers across the ASX 200. Morgan Stanley analysts lifted its price target on the stock on the back of heightened data centre demand.
Financials came in third best performing finishing up 1.03% with Westpac (2.69%) investors cheering after the bank declared a special dividend and boosted its share buyback despite reporting a drop in first-half profit. Meanwhile, Magellan edged 0.23% higher after it steadied outflows during April but reported a fall in funds under management.
Endeavour Group also gained, up 0.38%, after it reported a rise in hotel and retail sales during the third quarter, despite softer market conditions.
Despite announcing that it would pay $120 million in penalties and payouts for misleading customers, Qantas shares finished flat.
The worst performing sectors were industrials, down 0.18%, followed by consumer staples (-0.12%) and healthcare (-0.06%).
Spark New Zealand (-4.24%) was one of the worst performing stocks across the ASX 200 following its announcement that it had also reduced its full-year earnings guidance due to “challenging trading conditions”.
Meanwhile, Graincorp lost -4.04% after it cut guidance for its full-year earnings as grain production fell along with unplanned equipment maintenance.
The Australian dollar is higher buying 66.16 US cents.
The context: All eyes will be on the Reserve Bank on Tuesday as it will make its next monetary policy decision with analysts expecting the central bank to hold rates.
Tuesday will also see ANZ report earnings while Iluka Resources will hold its annual general meeting.
