The ASX 200 has closed higher for its sixth consecutive day, bringing the index’s gain for the week to 3.1%.
The gains followed that of US markets overnight, which were supported by Federal Reserve board minutes that suggested rates may have peaked, recognising it was “important to balance the risk of overtightening against the risk of insufficient tightening”.
Financials were the best of the sectors today, adding 1.1% after APRA stress tests underscored the strength of the banking system. The tests found that a hard landing scenario — of 10% unemployment, high inflation, and a one-third decline in house prices — was not enough to trigger any breaches in the major banks’ capital or liquidity buffers.
The big four were each trading around 1% higher this afternoon and the Bank of Queensland Ltd recovered some of yesterday’s losses sustained after it reported an 8% drop in FY23 cash net profit due to higher costs and loan impairment expenses.
Healthcare was the worst performing sector, down 4.1% as CSL Ltd extended yesterday’s fall with a 5.7% drop to $239.77, while Resmed Ltd fell 5.1% to $22.2, and Fisher and Paykel Ltd lost 3.97%.
The investor sell-off of CSL follows the company’s AGM yesterday afternoon where more than 20% of shareholders voted against the company’s remuneration report and it was grilled on a number of issues including its level of dividend payout.
Lithium miner Liontown Resources (ASX:ASX:LTR) Ltd fell 1.03% as it extended an exclusive due diligence period for its proposed $6.6 billion buyout by Albemarle by a week. Albemarle increased its offer to $3 per share cash offer a month ago, but since then Gina Rinehart's Hancock Prospecting has been increasing its stake in Liontown, which now stands at 19.9%. This has potential to complicate Albemarle’s takeover as it requires 75% support from shareholders.
Redbubble jumped 26% today with its quarterly trading update revealing a return to positive underlying cash flow of $700,000, up $16.9 million on the prior corresponding period.
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