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Australian shares end string of losses as gold, tech stocks rise

Published 28/10/2020, 04:53 pm
© Reuters.
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* Australian consumer prices rise 1.6% in September quarter

* Gold stocks gain amid stable yellow-metal prices

* Afterpay surges on strong Q1 underlying sales (Updates to close)

By Soumyajit Saha

Oct 28 (Reuters) - Australian shares ended four straight sessions of losses to close slightly higher on Wednesday as gold miners gained and technology stocks rose following Afterpay's strong earnings.

The S&P/ASX 200 index .AXJO ended 0.1% higher at 6,057.7. The benchmark fell 1.7% on Tuesday.

"The market's rise is just a small improvement after the previous losses, as the benchmark bounces back after coming close to the support level of 6,000," said Steven Daghlian, market analyst at CommSec.

"The market likely faces further volatility ahead, pending the U.S. elections and rising COVID-19 cases in Europe and the United States", Daghlian added.

In Australia, data showed consumer prices rose 1.6% in the September quarter, though that merely retraced the June quarter's record 1.9% plunge. (subdued inflation) does make the Reserve Bank of Australia comfortable with further cuts and other policy methods," Daghlian said.

Among sectors, the gold index .AXGD surged as prices of the yellow metal benefited from uncertainties about U.S. elections and surging global COVID-19 cases. GOL/

Gold explorer Ramelius Resources RMS.AX surged more than 7% as it reported a higher-than-expected gold production in the September quarter. stocks .AXIJ were also higher, with buy-now-pay-later firm Afterpay APT.AX jumping about 7% after its underlying sales in the first-quarter more than doubled. consumer sector .AXSJ also climbed, with the country's No. 2 supermarket chain Coles Group COL.AX posting a rise in first-quarter sales.

Financial stocks .AXFJ were lower with the "Big Four" banks falling in the range of 0.1% and 1.5%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 closed marginally higher at 12,264.5, helped by gains among healthcare and tech stocks.

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