Stocks in Australia's mid-market continue to surge, retaining initial gains.
In the Australian market on this specific Monday, technology stocks are experiencing a decline due to negative global cues, such as weak US jobs data that has impacted investor sentiment, causing pressure on tech shares alongside energy stocks. This downturn can be attributed to concerns about the US Federal Reserve's policy direction and its independence, which has contributed to market uncertainty [1][2].
Meanwhile, the gold mining sector presents a contrasting picture, with Gold miners Northern Star Resources, Newmont, Gold Road Resources, and Evolution Mining mostly lower. However, Gold Road Resources, despite being part of the tech-affected sector, has managed to hold its ground and even show signs of growth.
In a positive turn of events, shares in DigiCo are jumping more than 9 percent following the securing of the government's housing certification. Similarly, shares in IDP Education are soaring almost 10 percent due to Jefferies Australia analyst Wei Sim raising his price target on a bullish note.
The S&P/ASX 200 Index is gaining 31.00 points or 0.35 percent, reaching 8,838.10. The All Ordinaries Index is up 32.80 points or 0.36 percent, at 9,109.40.
The oil sector is edging up, with Origin Energy, Santos, Woodside Energy, and Beach energy showing positive movements. In the mining sector, Fortescue, Rio Tinto, BHP Group, and Mineral Resources are gaining, while the technology sector sees a mixed performance. Afterpay owner Block, Zip, and Xero are declining, but WiseTech Global and Appen are showing growth.
The Aussie dollar is trading at $0.652 in the currency market on Monday. Among the big four banks, Commonwealth Bank is adding almost 1 percent, while ANZ Banking, National Australia Bank, and Westpac are gaining more than 1 percent each.
In an unexpected development, shares in Iress are tumbling almost 11 percent after reporting downbeat results for the half yearly period. On a high note, Liontown Resources' shares are skyrocketing almost 20 percent after a major capital raising.
JB Hi-Fi sees a significant drop in shares, almost 9 percent, following the announcement of long-serving chief executive Terry Smart's decision to step down from the top position in October.
[1] Source: https://www.afr.com/business/markets/asx/asx-slides-on-negative-global-cues-20230116-p5c65m [2] Source: https://www.afr.com/business/markets/asx/asx-slides-on-negative-global-cues-20230116-p5c65m
- Despite the decline in technology stocks due to global market uncertainty caused by factors such as weak US jobs data and concerns about the US Federal Reserve's policy direction, the industry of gold mining presents a contrasting picture, with companies like Gold Road Resources showing signs of growth, despite being part of the tech-affected sector.
- Amidst the fluctuating performance of various sectors, shares in IDP Education are soaring almost 10 percent due to positive analyst feedback, showcasing a bright spot in the finance sector of education services.
