Market wrap: ASX ends losing streak with positive May 31 trading day

The Australian stock market shook off Wall Street’s dismal night, snapping a three-day losing streak and ending the week on a rebound.

The benchmark ASX 200 rose 73.5 points, or nearly 1%, to close at 7,701.7, while the broader All Ordinaries index rose 74.9 points, or 0.95%, to finish at 7,970.8.

Technology stocks also rose 25.6 points, or 0.84%, to 3,075.

The rally was broad-based, with 10 out of 11 industrial sectors closing in the green, led by consumer staples with a sharp rise of 1.91% and energy with a jump of 1.77%.

Retail giants Woolworths and Coles rose 2% to $31.60 a share and 1.73% to $16.42 a share respectively, while poultry producer Inghams jumped 2% to 3 $.54.

Oil and gas giant Woodside Energy rebounded 2% from Thursday’s selloff to close at $27.70 a share, while Santos rose 1.87% to $7.63.

The positive trading day broke a three-day streak of losses and came against a negative session on Wall Street overnight, which saw the Dow Jones fall 330 points, or 0.86%, to 38,111.

The S&P 500 index slipped 0.6% to 5,235, while the tech-heavy Nasdaq fell 1.08% to 16,737.

Wall Street’s woes came despite a downward revision to US GDP data, which IG markets analyst Tony Sycamore said would normally trigger a “strong March” in stock markets on Federal Reserve rate cut hopes .

“I think the principle of ‘bad news is good news’ failed to materialize last night for two reasons,” he said.

“First, following upside surprises in Australian and German inflation reports earlier this week, the market is taking a more cautious approach to consumer spending inflation data in the European region and United States tonight.

“The second is due to month-end rebalancing flows.

“When markets have outperformed as the Nasdaq has, fund managers are forced to sell the stocks that have outperformed to return to the benchmark portfolio weights.”

Sycamore suggested the resilience of Australian stock markets on Friday may have been fueled by a “buy the underdog” strategy given the relatively poor performance of the ASX200 in May compared to Wall Street.

Month to date, the Nasdaq is up about 6.3% and the S and P 500 is up about 4%.

The ASX200, by contrast, is flat.

Mining giants BHP and Rio Tinto posted gains, rising 0.47% to $44.51 and 1.02% to $128.96 respectively.

But Fortescue continued its week down, losing 0.16% to close at $24.74, despite a rally in late afternoon trading.

Big banks posted gains, led by Commonwealth Bank rising 1.31% to $119.54.

NAB rose 0.89% to $33.91, ANZ rose 1.15% to $28.25 and Westpac gained 0.19% to $25.98.

In corporate news, Australian fast food chain Guzman y Gomez has announced it will list on the ASX in June.

The Mexican restaurant and takeaway business will sell 11.1 million shares at $22 each for a valuation of $2.2 billion.

Qantas has signed a deal with Perth Airport to move the airline’s operations to a new $3 billion terminal by 2031.

The company jumped 1.32% in latest trading to close at $6.15.

The biggest gainer on the ASX200 was Telix Pharmaceuticals, which jumped 15.3% to $18.15 on positive data from a cancer drug trial.

The biggest laggard was Megaport Limited, which fell 3.41% to $13.56.

The dollar gained 0.08% against the greenback, buying 66.3 cents at the close.

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