Australian Stocks Climb for Sixth Consecutive Session

The Australian stock market concluded trading on a positive note Thursday, marking its sixth straight session of gains. This upward trend was primarily fueled by strong performances in the technology and real estate sectors.

The S&P/ASX 200 index saw a 0.2% increase, settling at 8,145.6 points, following a 0.7% rise the previous day.

Recent economic data revealed that core inflation for the first quarter had decelerated to its lowest level in three years. This brought the annual inflation rate within the Reserve Bank of Australia’s target range of 2% to 3% for the first time since late 2021, potentially paving the way for interest rate reductions on May 20.

Expert Opinion

According to Shane Oliver, chief economist at AMP, rate cuts typically benefit housing prices by increasing the borrowing capacity of potential buyers, thereby influencing how much they are willing to spend on properties.

Sector Performance
  • Real estate stocks experienced a significant surge, closing 1.6% higher to reach a two-month peak, driven by a 3.4% increase in Goodman Group, a data center landlord.
  • Technology stocks demonstrated robust growth, rising by 4%, with DigiCo, NEXTDC, and Data#3 recording gains between 4.6% and 6.3%.
  • Consumer staples also performed well, advancing by 1.4%, with Woolworths, a leading retailer, reporting a 3% increase in third-quarter sales, surpassing analysts’ expectations.

However, the upward momentum was partially offset by declines in commodity-related sectors, including mining, energy, and gold, which experienced losses ranging from 1% to 1.4%.

Oil prices exhibited a slight recovery, while precious metal prices continued to decline.

The banking sector remained relatively stable, with gains in Commonwealth Bank of Australia being counteracted by losses in Westpac, National Australia Bank, and ANZ.

In New Zealand, the S&P/NZX 50 index also saw substantial gains, rising by 2.1% to reach 12,148.6 points.