ASX rallies after RBA holds rates
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The news: The Australian sharemarket has ended the trading day higher as a late rally saw investors cheer the Reserve Bank's decision to hold rates.
The numbers: The benchmark ASX 200 finished 1.44% higher to 7,793.3, with all 11 sectors finishing in green.
The best performing sector was utilities, up 2.82%, followed by consumer discretionary (1.91%) and energy (1.69%). AGL led gains for utilities, up 7.51%, after it lifted its full-year earnings guidance thanks to higher consumer demand and plant improvements.
Large miners also gained, including BHP (1.5%), Fortescue (1.52%) and Rio Tinto (1.53%).
HMC Capital enjoyed a lift of 6.66% after announcing that its operating earnings per share for the 2024 financial year would be higher than expected. The asset manager also announced former prime minister Julia Gillard would chair its energy transition fund.
Elsewhere, Namoi Cotton ended the day up 1.39% after Louis Dreyfus Company lobbed an improved takeover offer, while PEXA finished 1.32% higher after it reaffirmed its operating earnings guidance but said it was cautious about the impacts of interest rate movements.
The worst performing sector was consumer staples, up 1.02%, followed by healthcare (1.28%) and financials (1.31%). Big four bank ANZ gained 0.1% after posting a 7% profit fall while also announcing a $2 billion share buyback.
Fund manager GQG fell 0.4% after recording its first monthly funds under management decline since October 2023.
The worst performing stock across the ASX 200 was metals recycling firm Sims, down 6.52%, after it announced that it expected lower underlying earnings for the second half of the fiscal year due to challenging export scrap metal market conditions.
Meanwhile, Dexus fell 0.28% despite reaffirming its full-year distribution guidance. The property manager has faced a challenging period amid a rapid increase in interest rates that has lifted its cost of debt that impacted portfolio valuations.
The Australian dollar is lower buying 65.91 US cents.
The context: Wednesday will see Perpetual update its strategic review that will give insight into a potential acquisition of its corporate trust and wealth management businesses by KKR, while GPT Group will hold its annual general meeting. Offshore, Disney is set to post its quarterly earnings.
