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AXJO ends day in green
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Banks rally led by ANZ
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Gold and property stocks add gains
(Updates to close)
By Rishav Chatterjee
May 5 (Reuters) - Australian shares rebounded to end
higher on Friday, snapping a three-day losing streak, reflecting
strength in local banks and property stocks, while investors
remained cautious over the health of the global economic system.
The S&P/ASX 200 index rose 0.4% to 7,220 points at
the close of trade.
A bounce back in ANZ Banking Group shares helped
lift the market as traders disregarded negative remarks from
company chief Shayne Elliott.
ANZ delivered record first-half gains but warned of
challenges ahead. Shares ended the day 1.5% higher.
Australia's central bank warned that risks to inflation were on the upside given low productivity growth, rising energy prices and a surge in rents as population growth outpaced all expectations. "Inflation will remain high in the stickier parts of the cost stack, like wages, but in cost of goods sold, we are seeing relief," said Matthew Haupt, lead portfolio manager at Wilson Asset Management. "Inflation is likely to continue to moderate over the year as demand softens and credit creation slows."
Banks closed the day up 0.3% as ANZ results pushed the index higher. Other major lenders, Commonwealth Bank of Australia and Westpac ended the day 0.3% and 0.6% higher respectively. Miners ended the day 0.6% higher tracking the broader market despite iron-ore prices falling to a near five-month low.
Lithium stocks also did well with Pilbara Minerals and Allkem closing up 4.0% and 3.8% respectively. Property stocks climbed for a second straight day with majors Dexus and Stockland Corporation ending 3.1% and 2.3% higher. Oil prices rose slightly in morning trade on Friday which aided local energy companies pushing the sub-index up 0.3%.
Oil and gas majors Santos and Woodside finished trading up 0.9% and 0.5% respectively.
Gold stocks had their best week in three with
Newcrest Mining and Ramelius Resources ending
the day up 2.2% and 5.6% as banking turmoil bolstered gold
demand.
New Zealand's benchmark S&P/NZX 50 index fell 0.7%
to finish the session at 11,889.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Janane
Venkatraman)
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