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ASX Recovers as Tech and Real Estate Shine

Published 05/09/2024, 08:44 pm
© Reuters ASX Recovers as Tech and Real Estate Shine
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Australian shares staged a rebound at the open on Thursday after a sharp decline the previous day. The S&P/ASX 200 Index (ASX: XJO) rose by 0.5% to 7,985 points, driven higher by gains in the technology and real estate sectors. This recovery follows the worst session in over a month on Wednesday, which was triggered by disappointing data indicating weaker-than-expected US manufacturing activity.

Woodside's Impact on the Index

Despite the overall positive movement, Woodside Energy Group Ltd (ASX: WDS) dampened the index’s performance, with its share price falling by 5.5% to $25.35. This decline comes as the stock enters ex-dividend trading and receives a downgrade from a leading financial institution.

Focus on Upcoming Data

In overnight trading in New York, shares drifted lower as attention shifted towards the upcoming US payrolls report for August. The data, scheduled for release at 10:30 PM AEST, is expected to influence whether the US Federal Reserve will implement a 25 or 50 basis point reduction in interest rates. Additionally, Reserve Bank of Australia Governor Michele Bullock is set to speak later today, which could impact market sentiment.

Stocks Making Headlines

- NextDC Ltd (ASX: NXT): NextDC is leading the index’s gains, with its share price surging 10.8% to $1.74.

- Santos Ltd (ASX: STO): Former Woodside CFO Sherry Duhe will join Santos in the same role from mid-October. Santos shares are slightly down by 0.5% to $7.04.

- Optus and TPG Telecom Ltd (ASX: TPG): Both companies received approval from the competition watchdog for their regional network-sharing agreement. TPG Telecom shares have edged up by 0.4% to $4.90.

- Coronado Global Resources Inc (ASX: CRN): Heavy rain at Coronado’s Bowen Basin coal mine in Central Queensland has impacted production for FY24. Shares have fallen by 16% to 92 cents.

- Challenger Ltd (ASX: CGF): Challenger’s share price dropped by 11.6% to $6.19 following the sale of a 10% stake in the company by US-listed private capital firm Apollo Global Management.

- Star Entertainment Group Ltd (ASX: SGR): Star’s shares remain halted as the casino operator continues negotiations with lenders, with no resolution yet in sight.

This snapshot highlights the current dynamics of the ASX, showing both the recovery in select sectors and the challenges faced by individual companies.

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