Report on Australian Shares
A stronger energy sector helped to buoy Australian shares as all concerns of an economic slowdown were put away. As a matter of fact, in the afternoon of Thursday, 3rd January 2019, Australian shares turned around the losses they had from the past session. According to a statement from Adam Joseph the executive director of Validus Equities, the Australian market is moving ahead while reversing most of the losses experienced from the previous sessions. The reality is that the Australian market has undergone a massive sell off and recovery not long after. With Institutions shifting between bonds and equations, this has exerted influence on both gains. Forecasts show that this trend will persist for a considerable time. This work will address Australian shares at length.
Following the rise in the price of Brent crude oil on Wednesday for a third consecutive session, the energy sector became stronger the following day. A rally on the Wall Street helped to keep this price on a high level. Oil Search rose, Beach Energy, Santos, Origin energy and petroleum are just illustrations of some of the components on energy whose price level increased. Major banks performed well, which epitomized the strong financial sector. Some of the banks that advanced their position include Commonwealth bank, Westpac rose and Suncorp Group among others.
There was also a rise in the materials sector with lithium miner Pilbara Minerals leading the way. The company issued a statement on funds they had set aside for their expansion project and a non- binding memorandum of association with POSCO that manufactures steel. This movement will help the joint venture contemplate on a South Korean chemical conversion facility of considerable size. Healius (formerly Primary Health Care) had it shares rise and closed high. This occurred immediately after the company was handed an unprompted and high conditional bid from Jangho Hong Kong to take possession of all the shares that the company did not have a right to.
In another case, Kathmandu had declared that its sales from the December period were below expectation. This result highlighted a bad sales period for investors in that month. Companies like Baby Bunting, Myer and Super Retail Group among others had the value of their shares diminish around the same time.
In the end, the Australian dollar reached a ten-year low during trade in the morning hours of the Thursday where losses were recovered in the space of just there minutes. Meanwhile, Apple reduced its revenue forecast for the first quarter thereby helping local tech stocks company to prevent a sell-off. The downgrade was viewed by shareholders to be the outcome of an economic slowdown, particularly from China.