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ASX rises amid strong sector performance, potential RBA rate hike looms

EditorPollock Mondal
Published 17/10/2023, 08:46 pm
© Reuters.
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On Tuesday, the S&P/ASX 200 index rose by 0.42% to 7056.10, despite a potential rate hike suggested by the Reserve Bank of Australia (RBA). The IT, Property, and Financials sectors led the gains with respective increases of 1.33%, 1.12%, and 0.78%. However, the Healthcare, Utilities, and Consumer Discretionary sectors lagged behind.

Australian bond yields saw an increase on Tuesday, with the 3-year yield reaching 4.08%. Amid this financial landscape, several companies experienced notable fluctuations. Bapcor Ltd reported a decline of 11.53% due to challenging trading conditions in the first quarter of 2024. On the other hand, Hub24 Ltd saw a rise of 1.42% after reporting net inflows of A$2.8 billion at the start of FY24.

In telecom news, TPG Telecom Ltd rallied by 5.6% following reports that Vocus Group Ltd was seeking A$6bn for a takeover and debt refinancing. This news put TPG in focus for investors and market watchers.

Meanwhile, mining company Rio Tinto (NYSE:RIO) Ltd also rallied by 1.2% thanks to strong iron ore prices and higher-than-expected copper production in the third quarter. This positive trend also influenced Fortescue (ASX:FMG) Metals Group (OTC:FSUGY) Ltd and BHP (ASX:BHP) Group (NYSE:BHP) Ltd as Iron Ore prices rose by 2.7% in Asia.

However, gold stocks cooled off after a good run, and uranium stocks including Paladin Energy (ASX:PDN) Ltd pulled back as well. Activist investor Sandon Capital Investments is advocating changes in Magellan Financial Group Ltd's growth strategy, urging the company to focus on its current business before pursuing expansion plans.

Asian stocks were mostly higher on Tuesday, with Hong Kong up by 0.70%, but US Futures were mildly lower. Among the US stocks set to report this week are Blackstone (NYSE:BX) Inc and Freeport-McMoRan (NYSE:FCX) Inc.

In broker moves, AVADA Group was rated as a new buy at Unified Capital and Red 5 was cut to hold at Canaccord.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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