It was another strong day for the local market with the S&P/ASX 200 (ASX: XJO) gaining 1.1%, primarily due to a strong global lead.
The Chinese Hang Seng continued its strong recovery, gaining close to 6% in a single session, further boosting the domestic technology sector which gained 3.6%.
Industrials were next best, up 1.2% with the likes of Block Inc (ASX: SQ2) and Zip Co Ltd (ASX: Z1P) gaining around 10% each and Magellan Financial Group Ltd (ASX: MFG) adding another 6.6% due to its significant fund investments in Alibaba (NYSE: BABA), which gained 30% in the US session.
The only detractors were the more stable defensive sectors, including utilities and non-discretionary retail, with GrainCorp Ltd (ASX: GNC) and Metcash Limited (ASX: MTS) reversing by 2.8% and 1.3%, respectively.
Electro Optic turns to strategic review
Shares in defence contractor Electro Optic Systems Hldg Ltd (ASX: EOS) were 6.8% higher after management confirmed it was considering funding and strategic options, potentially the sale of parts of its business, following a difficult few years for the share price.
Electro Optic shares have soared nearly 30% this week as countries ramp up their defence spending.
2-year Electro Optic share price chart
Ampol gets the green light
Ampol Ltd (ASX: ALD) has received positive news on its acquisition of Z Energy in New Zealand, with shares gaining 3.6% after the domestic competition watchdog approved the deal following confirmation of their sale of the Gull business.
Transurban not exposed to fuel prices
Macquarie’s research team has allayed fears that Transurban Group (ASX: TCL) may be exposed to a higher fuel price sending drivers onto public transport, suggesting the evidence of a reduction was ‘scant’.
Their research highlighted a negligible correlation between fuel prices and traffic, albeit the fuel price has rarely risen by 40% in such a short period of time. Transurban shares gained 2.1%.
Australian unemployment falls to decade low
Australia’s unemployment rate has reached a 14-year low of 4% in February with another 77 new jobs created; the last time unemployment reached this level was in 2008 amid the Global Financial Crisis.
It remains to be seen what will happen when international workers return and whether wage increases are sustained within businesses rather than for those just changing roles.
ASX 200 today
Looking ahead, the ASX 200 is expected to open higher again this morning, following another positive lead from US stock markets overnight.
